Enjoying a movie with a bucket of popcorn might soon become more expensive, depending on the type of popcorn you choose. The GST Council has confirmed a new tax structure for popcorn, which could affect your wallet, especially if you love caramelised popcorn. This decision was made during the 55th meeting of the GST Council on Saturday, where Union Finance Minister Nirmala Sitharaman explained the reasoning behind the tax rates.
Why Popcorn attracted 18 percent GST
According to Sitharaman, popcorn, including salted, plain, and caramelised, is sometimes sold as namkeen (snacks) in certain states. However, caramelised popcorn contains additional sugar, which makes it different from the regular, salted varieties. As a result, the tax rate for caramelised popcorn is higher than that for regular popcorn.
Currently, pre-packaged and labelled ready-to-eat foods, like plain popcorn, are taxed at 12%. But, caramelised popcorn will face a higher tax rate of 18%. On the other hand, unpackaged popcorn mixed with salt and spices is taxed at a lower rate of 5%. This difference in tax rates is due to the varying ingredients and preparation methods used for different types of popcorn.
CBIC Board soon release the notification in the Matter
The Central Board of Indirect Taxes and Customs (CBIC) will soon release an official circular to explain these tax rules more clearly. They want to make sure people understand why different types of popcorn are taxed differently.
Memes went viral on social media
After the announcement, social media users couldn’t resist making memes and jokes about the new tax rules. Many shared humorous interpretations of how complicated the tax on popcorn now seems. Some of the memes humorously questioned why such a high tax was placed on caramelised popcorn, while others played with the idea of popcorn tax confusion.
