CBIC Refutes Reports of 18% GST on Caramel Popcorn



Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that caramel popcorn, along with all other sugar confectionery, will now attract a GST rate of 5%. This refutes earlier reports suggesting an 18% tax on caramel popcorn. The move aims to simplify the GST structure for snack foods, benefiting consumers with potentially lower prices and providing clarity for businesses.

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.

GST on Caramel Popcorn: CBIC Clarifies 5  Rate

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

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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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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