GST On Popcorn: Final Clarity Emerges On Your Favourite Movie Snack
Popcorn mixed with salt and spice will attract a flat 5% GST, whether sold loose or pre-packaged and labelled.
The humble popcorn was in the limelight last year on whether you have to pay more on caramel popcorn or salted popcorn after the tax slabs were tweaked by the GST Council. Now, that debate can finally be put to rest.
The GST Council on Wednesday approved limiting slabs to 5% and 18%, effective from Sept. 22, the first day of Navaratri. The panel cleared the proposal to simplify the GST structure by reducing it from the existing four slabs — 5%, 12%, 18% and 28% — to just two.
Here's how much you will pay for popcorn under the new GST regime:
Under the revised structure, popcorn mixed with salt and spice will attract a flat 5% GST, whether sold loose or pre-packaged and labelled. They retain the essential character of namkeens.
Caramel popcorn, however, will continue to be taxed at the higher 18% slab, as its "essential character" shifts to sugar confectionery category.
Previously, spiced or salted popcorn sold loose attracted 5% GST, while the same item in pre-packaged and labelled form was taxed at 12%. While, Caramel popcorn was taxed at 18%. Confusing, wasn't it?
With the simplified two-rate system coming into effect on Sept. 22, the popcorn tax saga has finally reached its conclusion.
