The 55th meeting of the GST Council clarified the GST applicable for popcorn after a clarification request from Uttar Pradesh on popcorn mixed with salt, spices

In the 55th meeting of the GST Council, a clarification was provided regarding the applicability of GST on popcorn. This followed a request from Uttar Pradesh seeking clarification on the classification and applicable GST rate for mixed popcorn that includes salt and spices.

Social media users slam country’s excessive regulations and high taxation after government’s move to impose three-tier tax on popcorn.

India's move to tax popcorn differently based on its sugar or spice content has drawn criticism from the opposition and sparked social media outrage, with two former government economic advisers questioning the tax system introduced in 2017.

Amid frequent discussions around tax treatment on different products of popcorn, here is a detailed analysis of how much tax you will have to pay while purchasing the item in movie theatres.

After the GST Council decided to levy varying tax slabs on popcorn depending on its preparation and mix, now media reports have emerged stating that no increase has been implemented in GST applicable on the product.

Government sources have now clarified that popcorn sold in loose form in movie theatres will be levied 5 per cent GST, news agency PTI reported. This is on par with tax levied on popcorns in restaurants.

The GST hike on caramel popcorn to 18%, announced by Finance Minister Nirmala Sitharaman, has sparked outrage due to the complex tax slabs for popcorn: 5%, 12%, and 18%. The debate centers on the distinction between salted (taxed as 'namkeen') and caramelised popcorn (taxed as 'mithai').

The 55th meeting of the GST Council has ended and the GST Council decided to impose or remove tax on many things in this meeting. Tax matters on flavored popcorn were also considered in the council meeting.