GST on Popcorn: Popcorn sold in open form in cinema halls will continue to be subject to Goods and Services Tax (GST) at the rate of 5 percent, just like in restaurants. Government sources gave this information.
GST on Popcorn: Popcorn sold in open form in cinema halls will continue to be subject to Goods and Services Tax (GST) at the rate of 5 percent, just like in restaurants. Government sources gave this information. He said that if popcorn is sold mixed with a movie ticket, then the supply will be considered a composite supply and will be taxed as per the applicable rate of the main supply i.e. ticket.
In the 55th meeting of the GST Council, clarification was given about the applicability of GST on popcorn, as the Uttar Pradesh government had requested to clarify the classification and GST rate applicable on popcorn mixed with salt and spices. There has been no increase in the GST rate on popcorn.
Uttar Pradesh government had made the request
GST on popcorn was clarified in the 55th meeting of the GST Council. Actually, a request was received from Uttar Pradesh to clarify the classification and GST rate applicable on popcorn with salt and spices. There has been no increase in the GST rate on popcorn.
According to sources, popcorn is sold in open form in cinema houses, and hence the rate of five percent will continue to be applicable on it, similar to ‘restaurant service’. However, for this, popcorn will have to be supplied independently.
Popcorn classified as salty
Under GST, popcorn with salt and spices is classified as salty and is taxed at five percent. When it is sold pre-packaged and with labels, the rate is 12 percent. All sugar confectionery, except for a few items, attracts 18 percent GST, and hence popcorn with caramelized sugar is subject to GST at the rate of 18 percent.
All goods, including food items, are classified under GST as per the Harmonized System (HS) classification, a multipurpose international goods nomenclature developed by the World Customs Organization (WCO). This system is used by over 200 countries, covering more than 98 percent of international trade. The different GST rates are simply a result of the classification of the commodity under different chapters of the HS system.
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