GST Council Meet: Here's How Your Salted And Caramel Popcorn Will Be Taxed
When popcorn takes a sweet turn—like caramel-coated varieties—its "essential character" shifts to that of sugar confectionery and will attract 18% GST.
The humble popcorn popped into the limelight at the 55th meeting of the GST Council held in Jaisalmer, chaired by Union Finance Minister Nirmala Sitharaman.
The ready-to-eat popcorn will attract varying GST rates based on its preparation and packaging but there is no additional tax, the government clarified on Saturday.
For savory popcorn—mixed with salt and spices—it retains the essential character of namkeens. This means a GST of 5% applies if it is supplied loose or unpackaged, while 12% GST kicks in for pre-packaged and labeled popcorn, officials clarified in the press conference after the meeting.
However, when popcorn takes a sweet turn—like caramel-coated varieties—its "essential character" shifts to that of sugar confectionery. As a result, caramel popcorn and similar offerings will fall under HS 1704 90 90 and attract a higher 18% GST.
"No new imposition of tax is there on this product... this is merely a clarification being recommended by the Council to settle the disputes arising out of interpretation," a statement said.
The Goods and Services Tax Council took many decisions during its 55th meeting on Saturday. The meeting was chaired by Sitharaman and comprised state counterparts.
Some of the key decisions include GST on fortified rice reduced to 5% from 18% earlier, exemption of gene therapy from the tax, no GST for payment aggregators who do less than Rs 2,000 payment, among others.
(This story has been updated with clarifications from the government.)
