Complicated GST Regime On Chocolate Cake Causes Confusion, Elicits Netizen Reactions

The 55th GST council meeting concluded on December 21. The meeting that was held under the leadership of FM Nirmala Sithraman and its end conclusion appear to have caused ripples in the general discourse online.

While many have pointed out the lack of decisions on key issues like insurance and ATF, along with lowering taxes on food delivery, other have found astruse permutations and combinations of taxation.

One aspect that appears to have garnered attention is GST levied on cakes, and not any other type of cake, but chocolate cakes, which are often regarded as one of the most popular cakes around the globe.

To Be A Chocolate Cake Or Not

In this story, a chart explaining the various GST rates on the same chocolate cake in different scenarios has been central to the comments made by netizens.

In this chart, that is being publicised on X, a detailed distinction of the aforementioned situation has been presented. According to this sheet, ampou

In scenario 1, the cake served at a restaurant situated in a hotel where room tariff is more than 7,500 per unit per day, the tax liability would amount to 18 per cent.

In scenario 2, cake served at a restaurant situated in a hotel where room tariff is less than 7,500 per unit per day Customer orders cake from a cloud kitchen through online platform or takes-away cake from a bakery, the tax liability would be 5 per cent. or 18 per cent Supply of Goods - Zaitoon Judgement

Then customer is served cake by a bakery who bakes the cake themselves, tax liability stood at 5 per cent supply of service.

In the next scenario, the customer is served cake at an outlet engaged purely in trading of cakes, tax liability would stand at 18 per cent.

Cake served by an outdoor caterer at an event in a hotel where room tariff is more than 7,500 would amount to 18 per cent.

Finally, cake served by an outdoor caterer at an event in a hotel where room tariff is less than 7,500, the tax would amount to 5 per cent.

X users React To The Chart

Now reacting to this, many on X have made some keen observations.

On X user said, "GST rules are most stupid. See how GST varies for chocolate cake based on where you order it from. This government has made a mess out of GST."

One user said, "Your GST on chocolate cake now depends on where you are ordering from. Significant EODB."

One user, highlighting the intricacies of the situation said, "GST was Supposed To Simplify Taxes, But They Made It Unnecessarily Complicated, 2 Different GST Rates For Chocolate Cake, 3 Different GST Rates For Popcorn, God Save Small Businesses From Compliance."

Your GST on chocolate cake now depends on where you are ordering from, said another user.

Another user quipped, "In the CID episode, titled “A Sweet End,” ACP Pradyuman concludes that the murder by poisonous chocolate cake didn’t take place in the garden party at the hotel, but back in the guest’s room: “Look at the invoice, Abhijeet. GST on the cake is only 5%, but it’s a five-star hotel.”

Renowned financial journalist, Sucheta Dalal also took to X to share her thoughts. In her post, she said, "Any #GST payable on homemade chocolate cake make by me?? Just asking to be extra careful. 🥮🧁"