In the recently held 55th GST Council Meeting, changes were made affecting the prices of various goods and services. In this meeting, GST was imposed on many things, while it was reduced on many. The most discussed thing after the meeting was GST on popcorn. There were reports that the government may impose 5, 12 or even 18 percent (Popcorn GST) on popcorn . Now an update has come out on this.

Know what percentage of GST will be levied on popcorn?

According to government sources, popcorn sold in open form in cinema halls will continue to attract Goods and Services Tax (GST) at the rate of 5 percent, just like in restaurants. They said that if popcorn is sold along with movie tickets, it will be considered as a composite supply. Since the main supply in this case is the ticket, tax will be levied as per its applicable rate.

So was there no increase in GST rates?

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 containing salt and spices. There has been no increase in the GST rate on popcorn.

According to sources, popcorn is sold in loose form in cinema halls. Therefore, the same five percent rate as 'restaurant service' will continue to apply on it. However, for this, popcorn will have to be supplied freely.

These are the types of GST on popcorn

Under GST, popcorn with salt and spices is classified as salted and attracts a five percent tax. When it is sold pre-packaged and labelled, the rate is 12 percent.

All sugar confectionery except a few items attract 18 per cent GST. Hence, popcorn containing caramelised sugar attracts GST at the rate of 18 per cent. Government sources said the council recommended issuing a clarification to resolve classification disputes on popcorn containing salt and spices.