GST rates on Popcorn: People often like to eat popcorn while watching a movie in the theater, while it is much more expensive than outside. But now buying it can prove to be more expensive. In fact, on 21 December 2024, in the 55th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer city of Rajasthan, it was decided to impose different types of taxes on popcorn.

Now the prices of popcorn will be decided according to its flavor and packaging. In this meeting, a clarification has been issued on the tax levied on popcorn (Popcorn GST).

How much tax will have to be paid on popcorn in movie theaters?

According to this clarification, a 5% tax will be levied on ready-to-eat popcorn, 12% GST will be levied on pre-packaged popcorn and 18% GST (GST on Caramel Popcorn) will be levied on caramel popcorn. The department believes that this classification will end the confusion among people regarding the tax liability on popcorn products.

Finance Minister Nirmala Sitharaman said after the meeting, "We discussed caramelized popcorn a lot. All the states agreed that items containing added sugar should be kept in a separate tax bracket. For example, currently, salty snacks are taxed at 12%, while confectionery items including sweet snacks are taxed at 18%. No new tax is being imposed on popcorn; this clarification is only for more accurate guidelines. "

12% tax on packaged salty and butter popcorn

It is clear from the government clarification that salty and butter popcorn will be taxed at 5% if sold openly, but if the same is sold packaged, it will be taxed at 12% and when the popcorn is mixed with sugar (added sugar), the GST will become 18%. But there is confusion among people that if caramelized popcorn is sold openly, will it attract a 5% tax or will it still attract an 18% tax?

Some cinema hall owners feel that the new GST rates will not change the tax structure of popcorn sold in cinema halls because they sell open popcorn, which was taxed 5% earlier and is still the same. The new GST rates are for packed/tinned popcorn sold in grocery stores.

More tax will have to be paid on caramel popcorn.

At the same time, some say that even if popcorn is sold openly, more tax will have to be paid on caramel popcorn. Because when it is caramelized, it is no longer popcorn, then it becomes a confectionery (sweet), on which more GST will be charged and this will also apply to popcorn sold in cinema halls. That is, according to this, caramel popcorn sold in cinema halls will also become expensive.

When popcorn is mixed with sugar (caramel popcorn), it turns into sugar confectionery, and hence it will be classified under HS 1704 90 90, and according to the clarification of the GST Council, it will attract 18 percent GST.

Discussion on levying GST on e-commerce and food delivery apps

In this meeting, the GST Council also discussed levying GST on quick commerce, e-commerce, and food delivery apps. However, Finance Minister Sitharaman confirmed that no decision has been taken on this yet and urged everyone to avoid speculating on the matter until the final decision is taken.

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