GST On Popcorn: Final Clarity Emerges On Your Favourite Movie Snack

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, all types of popcorn, whether salted or caramelised, will be taxed at 5%.

The salted popcorn falls under the namkeen category while the caramelised popcorn falls under the confectionery category. The revised GST rate for both now stands at 5%.

Previously, spiced or salted popcorn sold loose attracted 5% GST, while the same item in pre-packaged and labelled form was taxed at 12%. Caramel popcorn was taxed at 18%.

Several reports have stated that caramel popcorn is taxed at 18% as it falls under sugar confectionery. However, this is not correct as per the official GST Council press release.

With the simplified two-rate system coming into effect on Sept. 22, the popcorn tax saga has finally reached its conclusion.

Corrigendum: In an earlier version, this story had mentioned caramel popcorn was taxed at 18% after the GST revision. The error is regretted.