Popcorn, the ultimate movie-time snack, is now in the spotlight for a surprising reason—taxes. Government sources have confirmed that loose popcorn sold in cinemas will continue to attract a 5 per cent GST just like restaurant services, as reported by PTI.
If popcorn is bundled with a movie ticket then it will be considered a composite supply. This means that the tax rate will depend on the main item—the movie ticket. The GST council in its 55th meeting addressed a request from Uttar Pradesh to clarify the GST rate for popcorn flavored with salt and spices.
Good news for popcorn lovers—there’s no change in the GST rate for your favorite snack. Popcorn served loose in cinemas is taxed at 5 per cent as it’s treated as part of restaurant services. When mixed with salt and spices, it’s categorized as namkeen and still attracts a 5 per cent GST.
However, the GST increases to 12 per cent if the popcorn is pre-packed and labeled. For caramelized popcorn, the tax rate is higher at 18 per cent as it falls under the sugar confectionery category.
The GST council has recommended a detailed clarification to address disputes over the classification of ready-to-eat popcorn mixed with salt and spices, as per government sources. Under GST, all goods including food items are categorised based on the Harmonized System (HS) classification.
It is a globally recognised system developed by the World Customs Organisation (WCO). This system, adopted by over 200 countries and covering 98 per cent of international trade. This determines the applicable GST rates for each commodity based on its classification under specific chapters of the HS system.
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