GST will continue to be levied at the rate of 5 percent on popcorn sold loosely in movie theaters. The same GST is charged on restaurants also. Yes, one thing must be understood that if popcorn is sold along with movie tickets, then the supply will be considered as joint supply and will be taxed as per the applicable rate of main supply i.e. tickets. According to Bhasha news, under GST, popcorn mixed with salt and spices is classified as namkeen and attracts 5 percent tax. When it is prepackaged and labeled, the rate is 12 percent.
Clarification given in the 55th meeting of the Council
According to the news, the 55th meeting of the GST Council sought clarification regarding the applicability of GST on popcorn as it had received a request from Uttar Pradesh to clarify the classification and GST rate applicable on popcorn mixed with salt and spices. All sugar confectionaries, except certain specified items, attract 18 per cent GST, and hence, caramelised popcorn attracts a rate of 18 per cent.
Recommendation to issue clarification
The GST Council has recommended issuing clarifications to facilitate resolution of classification disputes on ready-to-eat popcorn mixed with salt and spices, government sources said. All commodities, including food items, are classified under GST according to the Harmonized System (HS) classification, which is a multilateral international commodity nomenclature developed by the World Customs Organization (WCO).
The system is used by more than 200 countries, covering more than 98 percent of international trade. The different GST rates are simply a result of classification of the good under different chapters of the HS system.
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