GST Council clarifies GST Rate on Popcorn

The Union Finance Minister in 55th GST Council Meeting which was held on 21st Dec 2024, decided to impose 18% GST Rate on the Popcorn.

After the decison came, chaos happens among the people on matter of imposition of GST@18% on Popcorns. The common people are so dissatisfied with the decision that now for eating popcorn, they have to pay a GST of 18%. Means that even the most common eating items are now getting expensive day by day with burden of tax on them.

Although after this matter was talked about on various platforms by people, the Council came in with clarification on tax on Popcorm. The Finance Minister clarifies the tax imposed is related to different categories of Popcorn.

The Clarification is Read as Follows:

Ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled.

However, when popcorn is blended with sugar, changing its nature to sugar confectionery (e.g., caramel popcorn), it is classified under HS 1704 90 90 and is subject to 18% GST. It has been agreed to regularise the issues from the past on a “as is, where is” basis.

Note: There is no new imposition of any tax in this regard and is merely a clarification as certain field units were demanding different tax rates on the same. Therefore, it is a clarification being recommended by the GST Council to settle the disputes arising out of interpretation.