The GST Council has recommended to issue a clarification on the rates applicable to popcorn following a recent storm that took over internet. Here are answers to various questions on popcorn GST

Has GST on popcorn been increased?

There has been no increase in the GST rate on popcorn in the recently held GST Council meeting. A request was received from Uttar Pradesh to clarify the classification and the GST rate applicable on popcorn mixed with salt and spices. This issue was taken up by the 55^th GST Council and the Council recommended to clarify the same.

What is the basis for varying rates on different types of popcorn?

All goods, including food items, are classified under GST as per the Harmonised System (HS) classification which is a multipurpose international goods nomenclature developed by the World Customs Organisation (WCO). This system is used by over 200 countries covering over 98 per cent of the international trade. The varying GST rates are only consequential to the classification of the commodity under the different chapters of the HS system.

As per the HS classification, sugar confectionary falls under HS 1704 in Chapter 17. All sugar confectionaries, other than few specified items, attract 18 per cent GST. In India, namkeens are classified under HS 2106 90 99. Namkeens attract 5 per cent GST when sold in other than pre-packaged and labelled form and 12 per cent GST when sold in pre-packaged and labelled form.

What was the objective behind issuing the clarification?

The clarification is aimed at facilitating resolution of classification disputes in the field of ready-to-eat popcorn that is mixed with salt and spices.

Will popcorn sold in theatres become more expensive?

Generally, popcorn served to customers in the theatres is in loose form and hence, will continue to attract 5 per cent as applicable to ‘restaurant service’ as long as supplied independent of the cinema exhibition service.