GST on Popcorn Hiked After Council Meeting? Govt Sources Say No Increase in Goods and Services Tax Rate

The GST rate on popcorn remains unchanged following the recent GST Council meeting. A request from the State of Uttar Pradesh sought clarification regarding the classification and GST rate applicable to popcorn mixed with salt and spices.

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New Delhi, December 24: The GST rate on popcorn remains unchanged following the recent GST Council meeting. A request from the State of Uttar Pradesh sought clarification regarding the classification and GST rate applicable to popcorn mixed with salt and spices. The issue was addressed in the 55th GST Council meeting, where the Council recommended issuing a clarification, according to Government sources.

Government sources explained that all goods, including food items, are classified under GST based on the Harmonized System (HS) of classification. This international nomenclature, developed by the World Customs Organization (WCO), is utilized by over 200 countries, covering more than 98% of global trade. GST rates vary according to the classification of goods under different HS chapters. GST Council Meet: Goods and Services Tax on Rice Kernels Slashed To Help Poor, No Hike in Tax for Salted Popcorn, Says Finance Minister Nirmala Sitharaman.

For instance, sugar confectionery falls under HS Code 1704 in Chapter 17, with most items attracting an 18% GST rate. Meanwhile, namkeens are classified under HS Code 2106 90 99, attracting 5% GST when sold in a non-pre-packaged, non-labelled form and 12% GST when sold in pre-packaged and labelled form. GST on KSSSCI Forms: Priyanka Gandhi Attacks BJP Over Levying 18% GST on Job Application Forms, Says ‘Turned Dreams of People Into Source of Income’.

The clarification aims to resolve classification disputes regarding ready-to-eat popcorn mixed with salt and spices. According to government sources, this step will help streamline GST compliance and avoid ambiguities in the field.

On whether the sale of popcorn in theatres will become more expensive, the source clarified: "Popcorn served in theatres is typically provided in loose form, making it subject to a 5% GST rate, as applicable to 'restaurant service,' provided it is supplied independently of the cinema exhibition service."

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