Amid social media uproar over an 18% GST allegedly being imposed on caramelized popcorn, government sources clarified on Tuesday that popcorn sold in theatres will continue to attract a GST rate of 5%.
"Generally, popcorn served in theatres is provided in a loose form, categorizing it under 'restaurant service.' As such, it will remain taxed at 5% when supplied independently of cinema exhibition services," a senior official explained, speaking on condition of anonymity.
The clarification comes after a request from Uttar Pradesh sought to determine the GST classification for popcorn mixed with salt and spices. This matter was discussed during the 55th GST Council meeting, where the Council reaffirmed that no changes have been made to the GST rate on popcorn.
GST Rate Hike on Used Electric Vehicles Explained
In a separate update, concerns over the recent GST hike on old and used electric vehicles (EVs) from 12% to 18% were also addressed. Government sources explained that this change was part of a broader effort to simplify tax rates.
"As a measure of simplification, the GST Council recommended unifying the tax rate on all old and used vehicles, including EVs, to a standard 18%," officials said. Previously, these vehicles were taxed at varying rates depending on their classification.
Importantly, government sources clarified that the Council has not introduced any new taxes on these transactions. The hike aligns with efforts to streamline tax structures and ensure uniformity in GST rates.
Key Takeaways
- Popcorn served in theatres remains taxed at 5% under the 'restaurant service' category.
- No GST rate changes were made for popcorn during the recent GST Council meeting.
- The GST rate for used vehicles, including EVs, was standardized at 18% for simplicity, with no new taxes introduced.
This clarification aims to address public concerns and ensure transparency regarding GST rate changes.
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