GST to remain @5% on Caramel Popcorn Sold in Theatres; Govt Clarifies:

GST to remain @5% on Caramel Popcorn Sold in Theatres; Govt Clarifies Amid social media anger over the 18% Goods and Services Tax (GST) on caramelised popcorn, government sources stated on Tuesday that popcorn served in theatres will remain taxed at 5%. "Popcorn is generally served to customers in theatres in loose form and thus will continue to attract a rate of 5% as applicable to 'restaurant service' as long as supplied independently of the cinema exhibition service," government sources familiar with the matter said, demanding anonymity. "There was no increase in the GST rate on popcorn at the recent GST Council meeting. The State of Uttar Pradesh requested clarification on the categorisation and GST rate applicable to popcorn combined with salt and spices. This matter was brought before the 55th GST Council, and the Council suggested that it be clarified," sources stated. Separately, sources stated that the GST rate for old and used electric vehicles was increased from 12% to 18% as part of a simplification attempt. "As a means of simplification, the Council recommended to unify and prescribe a single rate of GST on the sale of all old and used vehicles including EVs at 18% which was leviable at different rates earlier," sources within the government claimed. Importantly, they stated that the Council did not advocate "no new taxes" on these transactions.