CBIC Refutes Reports of 18% GST on Caramel Popcorn

Last updated: 06 September 2025


The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the revised GST applicable 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 suggesting the same.

Responding directly to the post on X, CBIC categorically refuted the reports. It clarified that all sugar confectionery, including caramel popcorn, will now be taxed at 5% under the rationalized GST structure.

CBIC Refutes Reports of 18  GST on Caramel Popcorn

The official statement read:

"Dear @sardesairajdeep All sugar confectionary items will now be taxed at 5%. Kindly refrain from sharing incorrect information."

CBIC also shared a link to the official list of revised GST rates, confirming that:

  • Sugar-boiled confectionery has been reduced from 12% to 5%.
  • Sugar confectionery has been reduced from 18% to 5%.

This means that both salted and caramel popcorn will now attract only 5% GST, irrespective of packaging.

Previously, GST on popcorn varied significantly-5% for loose salted popcorn, 12% for packaged salted popcorn, and 18% for caramel popcorn. The rationalization has not only simplified the tax structure but also addressed one of the long-standing debates around snack food classification under GST.

Industry analysts believe this will benefit consumers with lower prices and reduce disputes in classification, offering clarity to manufacturers, retailers, and food chains.

Click here for the official press release of the new GST Reforms


CCI Pro

Category GST   Report

  1434 Views

Comments



More »


Popular News




CCI Pro
Meet our CAclubindia PRO Members


Follow us