GST on Popcorn: 5%, 12%, and 18% - Tax Based on Flavors

If you enjoy popcorn while watching movies with your family or friends, be prepared to spend more. In its 55th meeting held in Jaisalmer, Rajasthan, the GST Council made a significant decision regarding popcorn taxes. Under the chairmanship of Finance Minister Nirmala Sitharaman, the Council categorized popcorn into three GST slabs based on flavors, meaning your favorite snack will now impact your wallet differently.

Breakdown of GST on Popcorn:

1. Plain Salted or Spiced Popcorn (Unpackaged):

   • Tax Rate: 5%
   • Popcorn prepared with salt and spices, sold unpackaged and unlabeled, will attract a 5% GST.

2. Packaged and Labeled Salted/Spiced Popcorn:

   • Tax Rate: 12%
   • The same salted or spiced popcorn, when sold in packaged and labeled form, will incur a 12% GST.

3. Sugary/Flavored Popcorn (e.g., Caramel):

   • Tax Rate: 18%
   • Popcorn with sugar flavors like caramel falls under the "sugar confectionery" category and will be taxed at 18%.

Growing Popcorn Market:

Popcorn is a thriving industry globally. In India, the popcorn business was worth approximately Rs 1,200 crores in 2023 and continues to grow. Globally, the popcorn market is valued at over $8 billion this year.

Other Major Decisions:

The GST Council also addressed several other matters:

• Old Car GST:

  • EV, petrol, and diesel cars sold by registered dealers will attract 18% GST on margin value. For individual buyers/sellers, the rate remains at 12%.

• Fortified Rice:

  • GST on fortified rice has been reduced to 5%.

• Gene Therapy:

  • Gene therapy is now entirely exempt from GST.

• ACC Blocks with 50% Fly Ash:

  • GST reduced from 18% to 12%.

• Farm Produce:

  • Black pepper and raisins supplied by farmers are exempt from GST.

Deferred Proposals:

Some significant proposals were deferred:

• Reduction or removal of GST on health and life insurance premiums.
• Lowering GST rates for online food delivery platforms like Zomato and Swiggy.
• The 18% GST on hotels and restaurants remains unchanged.

With these changes, popcorn enthusiasts and taxpayers alike will need to keep an eye on their flavor preferences and the GST rates that come with them.