Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the revisedGSTapplicable to popcorn, putting to rest widespread confusion over tax rates. Earlier in the day, several reports claimed that salted or spiced popcorn would attract a uniform 5% GST, while caramel popcorn would be taxed at 18%, citing its classification under sugar confectionery. The claims gained traction on social media after senior journalist Rajdeep Sardesai posted a now-deleted update suggesti
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FAQ :
Reports had claimed that caramel popcorn would attract an 18% GST rate, classifying it under sugar confectionery.
The CBIC has clarified that all sugar confectionery items, including caramel popcorn, will now be taxed at a uniform 5% GST.
Yes, the GST rate for sugar-boiled confectionery has been reduced from 12% to 5%, and sugar confectionery from 18% to 5%. This means both salted and caramel popcorn will now be taxed at 5%.
The rationalisation aims to simplify the tax structure for snack foods, reduce disputes in classification, and offer clarity to manufacturers, retailers, and food chains.
Previously, GST on popcorn varied: 5% for loose salted popcorn, 12% for packaged salted popcorn, and 18% for caramel popcorn.
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