Nirmala Sitharaman's Popcorn GST: A Reality Check on India's Economic Growth

India’s GST revenue hits a record high, but why isn’t the middle class feeling the relief?

Taxes on your popcorn, second-hand car, and even water—why is GST still a hot topic 7 years later?

(Photo: The Quint/Kamran Akhter)

Seven years after its introduction, the Goods and Services Tax (GST) continues to dominate India’s economic debates. Recently, Finance Minister Nirmala Sitharaman’s comments on popcorn and second-hand cars reignited public frustration, with memes and jokes flooding social media.

But the concerns go beyond popcorn prices. While GST collections reached a record ₹2.10 lakh crore in April 2024, India’s GDP growth dropped to an 18-month low of 5.4% in Q2 of FY2024-25. Why is the middle class, bearing the brunt of inflation and indirect taxes, still feeling the pinch?

Take popcorn: plain popcorn sold loose is taxed at 5%, but caramelised popcorn invites an 18% levy. Similarly, selling your used car might involve GST, even though the margins (and confusion) fall on dealers. From water purifiers (18%) to frozen parathas (18%), GST’s complexity affects everyday essentials.

The middle class isn’t just grappling with GST but indirect taxes on fuel and utilities. For instance, petrol prices in Delhi remain near ₹95/L, with almost 40% of that as taxes. Despite promises of a 5 trillion-dollar economy by 2024, inflation at 6.21% and job stagnation leave little room for optimism.

Experts suggest reducing GST rates and streamlining tax structures to ease the burden on consumers. Investment in public infrastructure and lowering fuel taxes could also spur growth. Until then, the question remains—when will India’s economic policies truly align with its growth ambitions?

As popcorn taxes boil over, the middle class wonders, Janab, aise kaise?