There is a lot of confusion among the common people regarding GST on popcorn. How much GST will be charged on which type of popcorn? How much will be the tax on popcorn in cinemas? How much tax will have to be paid on popcorn in the mall? The government is trying to solve all these questions. A big update regarding popcorn has come out quoting government sources. There is a big update on how much GST will be charged on popcorn especially in cinema halls. Let us also tell you what kind of update has come out quoting government sources?
According to information received from government sources, goods and services tax (GST) will be levied at the rate of five percent on popcorn sold openly in cinema halls, just like in restaurants. He said that if popcorn is sold along with a movie ticket, it will be treated as an overall supply and since the main supply in this case is the ticket, it will be taxed as per the applicable rate. GST on popcorn was clarified in the 55th meeting of the GST Council. Actually, a request was received from Uttar Pradesh to clarify the classification and GST rate applicable on popcorn with salt and spices. There has been no increase in the GST rate on popcorn.
According to sources, popcorn is sold loose in cinema houses, and hence the same five percent rate as restaurant service will continue to be applicable on it. However, for this popcorn will have to be supplied independently. Under GST, popcorn with salt and spices is classified as namkeen and attracts five percent tax. When it is sold pre-packed and labeled, the rate is 12 percent.
All sugar confectionery except a few items are subject to 18 per cent GST, and hence popcorn with caramelised sugar is subject to 18 per cent GST. Government sources said the council recommended issuing clarifications to resolve classification disputes on popcorn containing salt and spices.
