The 55th meeting of the GST Council clarified the GST rates on popcorn served in cinema halls and theatres. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising her state counterparts, said ready-to-eat popcorn mixed with salt and spices if not not pre-packaged will be subject to 5% GST, while the rate will be 12% if not pre-packaged. it is prepackaged and labeled.

The council increased the rate to 18% when popcorn is mixed with sugar (caramel popcorn), as this changes the essential character of popcorn to sweet confectionery and will be classified under HS 1704 90 90.

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GST Council, meeting in Jaisalmer, Rajasthan, may review adjustment of tax rates for around 148 items, including possible hikes on luxury goods like watches, pens, shoes and clothes. Additionally, they could consider implementing a new 35% tax slab specifically for sin products, separate from the current four-tier GST system comprising rates of 5%, 12%, 18% and 28%.