Popcorn is the most popular munching snack when it comes to movie time. And this humble-looking snack became the center of debate recently when Finance Minister Nirmala Sitharaman announced different tax rates for popcorn. Scroll down to read the details.
The 55th GST Council meeting on Saturday, chaired by Finance Minister Nirmala Sitharaman, recently announced different tax rates for popcorn. According to the council, ready-to-eat popcorn that is prepackaged and mixed with salt and spices will be taxed at 12 percent, while caramelized popcorn will be taxed at 18 percent.
“When popcorn is mixed with sugar (caramel popcorn), its essential character changes to sugar confectionery, and hence it will attract 18 per cent GST,” clarified the finance minister. Take a look at the breakdown:
Unpackaged and unlabelled salted popcorn: 5% GST
Pre-packaged and labeled ready-to-eat popcorn: 12% GST
Caramelized Popcorn: 18% GST
Some consumers jokingly speculated about the potential tax implications of drinking water. “What next? GST on drinking water — 5% if you sip, 12% if you sip, and 18% if you spill,” said one person.
The decision also drew attention to broader concerns over GST rates on essential and everyday items. Another user compared the popcorn tax to the 18% GST levied on used cars, saying, “Popcorn with 18% GST makes sense because it’s a luxury snack, but for old cars. Why do the less privileged buy the same rate?”
One user commented, “Does your popcorn have salt?” Meanwhile, others suggested buying DIY popcorn to avoid higher taxes, suggesting, “The only way to legally avoid tax on popcorn is to buy ACT II and enjoy it tax-free. “
The news went viral on social media with a flood of memes surrounding it and sparked a debate about the council. Scroll down to see viral memes: