Recent outrage over an 18% GST on caramelized popcorn has been clarified by government sources, affirming that popcorn sold in theatres remains at a 5% rate as part of restaurant services. The confusion stemmed from discussions in the GST Council meeting, which emphasized no changes were made to popcorn taxation. Additionally, the GST on old electric vehicles increased to 18% for simplification.
New Delhi: Recently, social media was abuzz with outrage over reports claiming an 18% GST on caramelized popcorn. However, government sources have clarified that popcorn sold in theatres will still attract 5% GST, as it is considered a part of restaurant services.
“Generally, popcorn is served to customers in theatres in loose form and hence will continue to attract a rate of 5% as applicable to ‘restaurant service’ as long as supplied independent of the cinema exhibition service,”
government sources stated.
The confusion arose after discussions in the 55th GST Council meeting, where the State of Uttar Pradesh sought clarity on the GST rate for popcorn mixed with salt and spices. Government officials emphasized that no changes have been made to the tax rate on popcorn in this meeting.
“There has been no increase in the GST rate on popcorns in the recently held GST Council meeting. A request was received from the State of Uttar Pradesh to clarify the classification and GST rate applicable on popcorn mixed with salt and spices. This issue was taken to the 55th GST Council, and the Council recommended to clarify the same,”
said the sources.
Separately, concerns were raised about the increase in GST on old and used electric vehicles (EVs) from 12% to 18%. Government sources clarified that this adjustment is part of a simplification effort to unify GST rates across all used vehicles.
“As a measure 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,”
officials explained.
They further emphasized that no new taxes were introduced during the Council meeting. “The Council has not recommended any ‘new taxes’ on these transactions,” the sources confirmed.
The clarification aims to address misinformation and calm public concerns. The government reiterated its commitment to maintaining fair taxation policies and simplifying GST structures to avoid confusion among consumers.
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