Glazed and Confused: Donuts Face Tax Trouble

India's GST rollout has been slammed by the Congress, pointing to Mad Over Donuts' tax notice recently. The business is facing a ₹100 crore demand for misclassifying their business as a restaurant service, paying 5% GST in place of 18% for bakery products. This matter is pending in the Bombay High Court. The Congress maintains that this sophistication requires an overhaul of GST, or "GST 2.0," to make the tax system simpler. The controversy is reminiscent of previous popcorn controversies and highlights the requirement for more transparent tax categorizations in India's food sector.

Source: The Economic Times