GST rate of 18% on popcorn when mixed with Sugar [Read Circular]:

GST rate of 18% on popcorn when mixed with Sugar [Read Circular] Based on the recommendations of the GST Council in its 55th meeting, the Ministry of Finance has clarified that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99. It is also hereby clarified that such ready to eat popcorn mixed with salt and spices classifiable under HS 2106 90 99 attracts 5% GST if other than pre-packaged and labelled vide S. No. 101A of Schedule I of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017 and 12% GST if sold as packaged and labelled vide S. No. 46 of Schedule II of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017, as it has the essential character of namkeens. However, when the popcorn is mixed with sugar thereby changing its character to sugar confectionary (e.g. caramel popcorn), it would be classifiable under HS 1704 90 90 attracting 18% GST vide S. No. 12 of Schedule III of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017

GST rate on popcorn

Popcorn		HSN	GST Rate
Ready to eat popcorn which is mixed with salt and spices [essential character of namkeens]	Pre-packaged and labelled	HS 2106 90 99	12%
Ready to eat popcorn which is mixed with salt and spices	Other than pre-packaged and labelled	HS 2106 90 99	5%
Popcorn mixed with sugar [e.g. caramel popcorn]	Any	HS 1704 90 90	18%

Further, in view of the prevailing genuine doubts regarding the applicability of GST rate on ready to eat popcorn mixed with salt and spices, as recommended by the Council, the issue for past period up to 14.2.2025 is hereby regularized on 'as is where is' basis. Read Circular