Popcorn GST Details: Government's clarification on GST rate on popcorn in cinema halls, know what it said on this?

Popcorn GST Details: 5 percent Goods and Services Tax (GST) rate will be applicable on popcorn sold loosely in cinema halls, as is applicable on restaurant services. According to government sources, if popcorn is sold along with a movie ticket, it will be considered as 'combined supply' and the GST rate of the main supply i.e. ticket will be applicable.

The Uttar Pradesh government had sought clarification regarding the GST rate and classification of popcorn, especially with reference to salt and masala popcorn. This clarification was given in the 55th meeting of the GST Council.

The 55th meeting was held in Jaisalmer, Rajasthan. There has been no increase in the GST rate on popcorn. The government clarified that popcorn sold loosely in cinema halls will attract GST at the rate of 5 percent, which is similar to restaurant services.

If popcorn is pre-packed and labeled and sold at retail stores, the GST rate on it will be 12 percent. At the same time, if popcorn is sold with caramelized sugar, then 18 percent GST will be applicable on it, because it comes under the category of sugar confectionery.

According to the GST Council, popcorn has been classified as namkeen and attracts 5 percent GST. If popcorn is sold pre-packed and labeled, then it comes under the ambit of 12 percent tax.