Enjoy movies with a bucket of popcorn might take a heavy hit on your pocket depending on your choice of popcorn. The GST Council confirmed the tax structure on popcorn during its 55th meeting on Saturday, declaring that there will be no changes to the current rates. Union Finance Minister Nirmala Sitharaman outlined the rationale for GST rates during the meeting.
She remarked, "Salted, caramelised, plain popcorn is offered as namkeen in some states. Caramelised popcorn contains extra sugar, hence the treatment rate differs from namkeen.
Pre-packaged and labelled ready-to-eat foods, such as popcorn, are currently subject to a 12% GST. Meanwhile, caramelised popcorn has a higher rate of 18%. The GST rate for unpackaged and unlabelled popcorn mixed with salt and spices is 5%.
The Central Board of Indirect Taxes and Customs (CBIC) will soon release a circular to provide additional clarity on these tax issues. The council underlined that the tax distinction stems from the diverse properties and preparation methods of popcorn.
The announcement generated a flurry of humorous memes on social media, with users displaying their inventive interpretations on the GST imposed on popcorn. One user poked fun at the GST Council, uploading a meme depicting the complications of calculating tax on popcorn. Here's what people shared.
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