In the recently held GST Council meeting, it was clarified that there has been no change in the Goods and Services Tax (GST) rate on popcorn available in loose form. The Uttar Pradesh government had requested clarification on the category of popcorn containing salt and spices and the applicable GST on it. The council decided to issue a clarification on this.
5% GST on loose popcorn remains intact
According to sources, the council said that 5% GST will be applicable on popcorn sold in loose form in theatres.
- Popcorn in theaters is usually sold along the lines of restaurant service.
- There has been no change in this category.
Confusion over popcorn categories
There was some confusion after the announcement of different GST rates on popcorn in the GST Council meeting held on December 21.
- Ready-to-eat popcorn: 5% GST.
- Packaged Popcorn: 12% GST.
- Caramelized Popcorn: 18% GST.
The Finance Minister said that due to adulteration of sugar in caramelized popcorn, it has been kept in a separate category. All states agreed to this classification.
GST Council decision
- A clarification will be issued to clarify the category of popcorn containing salt and spices.
- Maintaining the existing GST rates, loose popcorn sold in theaters will attract only 5% GST.
Classification of GST on Popcorn
| Type | GST rate |
|---|---|
| Loose popcorn (in the theater) | 5% |
| Ready-to-Eat Popcorn | 5% |
| Packaged Popcorn | 12% |
| Caramelized Popcorn | 18% |
Finance Minister’s comment
The Finance Minister clarified that products which are prepared from sugar or other ingredients are kept in a separate category. This segmentation will provide greater clarity for consumers and traders.
