Quick Summary
Consuming popcorn at a movie theatre could soon cost you more, depending on how it is served and bundled with movie tickets. The GST Council, following a request from Uttar Pradesh, has clarified the Goods and Services Tax (GST) rates applicable to different forms of popcorn. GST Rates on Popcorn Loose and Salted Popcorn: If served loose and mixed with salt and spices, it generally attracts 5% GST, provided it is classified under 'restaurant service' and supplied independently of cinema e
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FAQ :
Yes, it's possible. The GST Council has clarified tax rates, and depending on how popcorn is served and bundled with movie tickets, the GST could increase to 12% or 18%.
Loose popcorn, if served independently and classified under 'restaurant service', generally attracts 5% GST. However, if it's part of the cinema exhibition service, the rate could be 12% or 18%.
Pre-packaged and labelled popcorn currently falls under the 12% GST slab.
Yes, caramel popcorn attracts a higher GST rate of 18%.
Bundled deals can be complex. If it's a 'composite supply' (naturally bundled), the GST rate of the main item (the ticket) applies. If it's a 'mixed supply' (artificially bundled), the highest GST rate of any item in the bundle is applied, potentially increasing the cost.
A composite supply is where items are naturally bundled, with one being the main item (like a ticket and standard popcorn). A mixed supply is when items are artificially bundled together for a single price (like premium popcorn with a ticket), and the highest GST rate applies.
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