New Delhi: The GST rate on popcorn remains unchanged after the recent GST Council meeting. A request from the State of Uttar Pradesh had sought clarification regarding the classification and GST rate applicable to popcorn mixed with salt and spices.
According to government sources, the issue was addressed in the 55th GST Council meeting, where the council recommended issuing clarifications. Government sources said all goods, including food items, are classified under GST based on the Harmonized System of Classification (HS).
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This international nomenclature, developed by the World Customs Organization (WCO), is used by more than 200 countries, covering more than 98% of global trade. GST rates vary according to the classification of goods under different HS chapters. For example, sugar confectionery falls under HS code 1704 in Chapter 17, with 18% GST rate applicable on most goods.
Meanwhile, namkeen is classified under HS code 2106 90 99, which attracts 5% GST if sold in pre-packaged, unlabelled form and 12% GST if sold in pre-packaged and labeled form. Does. The clarification aims to resolve classification disputes regarding ready-to-eat popcorn mixed with salt and spices.
According to government sources, the move will help streamline GST compliance and avoid ambiguity in the area. On whether popcorn would become more expensive to sell in theaters. The source clarified that popcorn served in cinemas is usually provided in loose form, making it subject to the 5% GST rate applicable to 'restaurant service' provided it is supplied independently of the cinema exhibition service. . (agency)
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