GST Rate on Popcorn: Key Questions Answered | FAQs
By: Admin
Date: December 25, 2024
Category: GST Recent News
Reading Time: 4 Minutes
The 55th GST Council meeting in Jaisalmer, Rajasthan, shed light on the GST classification and rates applicable to popcorn, a popular snack. With different types of popcorn—plain, salted, or spicy—the GST rates have been a topic of debate. Below are the key clarifications.
Key Highlights
- No GST Rate Hike: The GST rate on popcorn remains unchanged.
- HS Classification: Popcorn GST rates are determined based on the Harmonized System (HS) classification.
- Rates for Namkeens and Popcorn:
5% GST: When sold loose or without packaging.
12% GST: When pre-packaged and labeled.
- Popcorn at Theatres: Typically served loose, attracting 5% GST.
FAQs
- Has the GST rate on popcorn been increased?
No, the GST rate on popcorn has not increased. The Council addressed requests for clarification on popcorn mixed with salt and spices, ensuring no changes in rates.
- Why do popcorn GST rates vary?
GST rates for popcorn depend on the HS classification:
Loose popcorn: 5% GST (non-packaged).
Pre-packaged & labeled popcorn: 12% GST.
- What was the objective of the clarification?
The Council issued clarifications to resolve disputes regarding ready-to-eat popcorn mixed with salt and spices under HS classification.
- Will popcorn prices increase in theatres?
No. Popcorn in theatres is generally served loose (without packaging), and as part of restaurant services, it continues to attract 5% GST.
Why It Matters
This clarification simplifies GST compliance for businesses selling popcorn and provides transparency for consumers about potential price impacts.