During the GST Council 55th meeting it said that the taxation laws for popcorn reaffirmed that no charge will be there in the current rates. It was cited by the Union Finance Minister Nirmala Sitharaman that the tax treatment differs based on the type of popcorn and its classification.
Major highlights
The different GST rates on popcorn and the additional order can be checked below:
GST Tax On Popcorn
- There will be a 12% GST on the Pre-packaged and labelled ready-to-eat popcorn.
- Under HS code 1704 90 90, Caramelized popcorn is classified as sugar confectionery that attracts 18% GST due to the addition of sugar.
- A 5% GST rate is imposed on Non-pre-packaged and unlabelled popcorn mixed with salt and spices, corresponding namkeens.
A circular has been issued by the Central Board of Indirect Taxes and Customs (CBIC) to address any confusion regarding popcorn taxation.
Additional GST Judgments
- Agricultural produce: Black pepper and raisins provided by farmers will be waived from GST.
- Fortified rice kernels: GST rate decreased to 5%.
- Deferred judgments: On GST no final call was made for the food delivery platforms such as Swiggy and Zomato or on lowering GST rates for insurance premiums.
Finance Minister Comments
Finance Minister Sitharaman said “Salted, caramelised, plain popcorn is being sold as namkeen in certain states. Caramelised popcorn comes with added sugar, so the treatment rate is different from namkeen.”
The same clarification assures that businesses and consumers are conscious of various categorizations and tax treatments for distinct popcorn types.
Read Also: GST Council Members Proposes Tax Exemption on Third-party Motor Premiums Under MVA Fund
Closure: The decision of the GST council to furnish clarity on popcorn taxation shows its devotion to solving tax compliance issues. Decisions are also being made by the council for the food grains and deferred key discussions, keeping stakeholders across sectors engaged.
