GST Council Meeting: The 55th meeting of the GST Council was held in Jaisalmer, Rajasthan on Saturday under the chairmanship of Finance Minister Nirmala Sitharaman. In this meeting, important clarification was issued regarding GST applicable on popcorn.
Under this, popcorn has now been brought under the tax net by dividing it into different categories. Apart from this, there has been intense discussion on many other issues including GST on food delivery app.
Finance Minister Nirmala Sitharaman told after the meeting that 5 percent GST will be applicable on ready-to-eat popcorn, while 12 percent GST will be applicable on packaged popcorn. At the same time, 18 percent GST will be imposed on caramelized popcorn.
Nirmala Sitharaman told that due to the addition of sugar in the caramelized variant of popcorn, it has been kept in a separate category. All states have agreed to this.
The issue of imposing tax on popcorn was widely discussed in the meeting. The Finance Minister said that all the states have agreed to this decision. The tax rate on added sugar in foods like popcorn has been increased to 18 percent, which is generally applicable to sweets and other sweet snacks.
Along with this, there was also a comprehensive discussion in the meeting regarding GST on quick commerce, e-commerce and food delivery apps. However, the Finance Minister said that no decision has been taken yet in this matter and appealed to everyone not to speculate on this subject until the final decision is taken.
Let us tell you that popcorn already comes under the purview of GST (Three layer GST on Popcorn). In the GST Council meeting, it has been divided into many categories. The popcorn you eat in a movie theater attracts only 5 percent tax because it is in open packets and no brand name is written on it.
