After the GST Council decided to impose varying tax slabs on popcorn depending on its preparation and mixing, media reports have recently surfaced stating that no increase in GST applicable on this product had not been implemented.

Citing sources, Moneycontrol reported that the announcement regarding popcorn at the GST Council meeting was made to clarify the classification and tax slab applicable to popcorn mixed with salt and spices. On the other hand, no increase has been made in the tax levied on snacks.

The sources further said that the Board had received a request from Uttar Pradesh seeking clarification on the rate of GST levied on the snack. “The Council recommended the issuance of a clarification to facilitate the resolution of classification disputes in the area of ​​ready-to-eat popcorn mixed with salt and spices,” it notes.

The report further states that this means that popcorn served in bulk at cinemas will continue to be subject to the current 5 percent tax rate. “In general, popcorn is served to customers in cinemas in free form and will therefore continue to benefit from the 5 per cent rate applicable to ‘catering service’ as long as it is provided independently of the cinema exhibition service” , added the sources.

Read also: After a separate GST on caramelized popcorn, netizens are wondering: “What next?” GST on drinking water? »

This clarification comes at a crucial time because Internet users have not welcomed what they consider to be an increase in the tax on popcorn. Earlier on December 21, the Council said that pre-packaged and ready-to-eat popcorn would be taxed at 12 percent GST, while caramelized popcorn would be taxed at 18 percent.

The report cites sources and explains that the different tax rates on popcorn are due to the Harmonized System (HS) classification, a multipurpose international classification of goods developed by the World Customs Organization (WCO).

Read also: 18 per cent GST on old used cars applicable only when sale price exceeds depreciation value: report