Amid social media uproar, government sources clarified that popcorn served in theatres remains taxed at 5% GST under “restaurant service.” Meanwhile, GST on old and used electric vehicles has been unified at 18% for simplification, with no new taxes introduced.

Popcorn in Theatres: No GST Hike

Concerns about an 18% GST on caramelized popcorn prompted clarifications from government sources:

• Tax Rate Unchanged: Popcorn served in theatres remains taxed at 5% GST when sold in loose form as part of “restaurant service.”
• No Recent Changes: The 55th GST Council meeting did not revise GST rates on popcorn.
• Clarification Sought: Uttar Pradesh requested clarity on GST for salted and spiced popcorn, prompting the Council to address the classification.

This ensures affordable pricing for theatre snacks, alleviating consumer concerns.

GST on Used EVs: Simplified Tax Structure

The GST Council has unified the tax rate for all old and used vehicles, including electric vehicles (EVs):

• Unified Rate: A single GST rate of 18% replaces earlier varying rates for used vehicles.
• Simplification Effort: This move aims to streamline taxation and reduce confusion in the secondary vehicle market.
• No New Taxes: The Council confirmed no additional taxes were introduced for these transactions.

Key Takeaways

1. Theatre Popcorn: Remains affordable at a 5% GST rate, ensuring clarity for cinema-goers.
2. Used Vehicle Tax: Simplified to a consistent 18% GST, supporting uniformity in the market.

The GST Council’s recent decisions reflect efforts to simplify tax structures while maintaining affordability for consumers and businesses.

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