GST on Popcorn: Clarifications from the 55th GST Council Meeting
Discover the latest GST on popcorn ! From loose snacks at theatres to caramel delights, learn how tax rates vary based on preparation and packaging.
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Learn about GST rates on popcorn—loose, spiced, or caramelized. Understand how packaging and sales mode impact tax rates based on the GST Council’s latest updates.
Clarification on GST Applicability
The 55th meeting of the GST Council addressed questions regarding the GST rate on popcorn. A request from Uttar Pradesh sought clarity on the classification and applicable GST for popcorn mixed with salt and spices.
GST on Popcorn Sold in Theatres
Popcorn sold in loose form at movie theatres will continue to attract a 5 per cent GST, similar to the rate applied to restaurant services.
If popcorn is sold as part of a bundle with a movie ticket, the transaction is treated as a composite supply. The applicable GST rate will align with the principal supply, which is the movie ticket in such cases.
No Increase in GST Rate
The recent GST Council meeting confirmed that there is no change in the GST rate on popcorn.
Classification and Rates
Popcorn served in loose form in theatres is taxed at 5 per cent under the category of “restaurant service.”
Popcorn mixed with salt and spices is classified as namkeen, attracting a 5 per cent GST.
Pre-packed and labeled popcorn is taxed at 12 per cent.
Caramelised popcorn is categorized under sugar confectionery and taxed at 18 per cent.
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Resolution of Classification Disputes
The GST Council recommended issuing clarifications to resolve classification disputes regarding ready-to-eat popcorn mixed with salt and spices.
HS Classification System
The GST classification of goods, including food items, follows the Harmonised System (HS) developed by the World Customs Organisation (WCO). This international system is used by over 200 countries, covering 98 per cent of global trade. Variations in GST rates depend on the classification of goods under different HS chapters.
Stay updated on GST rates for popcorn! From spiced mixes to caramel treats, this guide ensures you’re informed about tax changes affecting your favorite snack.
Disclaimer: This is not financial or investment advice. Please conduct your own due diligence or seek expert guidance for financial planning.
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