GST on Caramel Popcorn in Theatres Remains at 5%, Govt Clarifies



Quick Summary
The government has clarified that the Goods and Services Tax (GST) on popcorn sold in theatres will continue to be 5%. This rate applies when popcorn is sold as a 'restaurant service' independently of cinema tickets. The clarification follows social media discussions and a request from Uttar Pradesh regarding the classification of salted and spiced popcorn. Separately, the GST on used electric vehicles has been standardised to 18% as part of a broader tax simplification effort, with no new taxes being introduced.

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
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FAQ :

The GST rate on popcorn sold in theatres remains at 5%.

Popcorn served in theatres is generally considered a 'restaurant service' and is taxed at 5% when supplied separately from cinema exhibition services.

No, the GST Council reaffirmed that no changes have been made to the GST rate on popcorn.

The GST rate on all old and used vehicles, including electric vehicles, has been unified and standardised at 18%.

The GST rate for used EVs has been standardised to 18% from previous varying rates as a measure of simplification. No new taxes have been introduced.




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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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