News Arena

Home

Nation

States

International

Politics

Opinion

Economy

Sports

Entertainment

Trending:

Home
/

gst-on-caramel-popcorn-to-be-18pc-12pc-for-ready-to-eat

Economy

GST on caramel popcorn to be 18pc, 12pc for ready-to-eat

The GST Council, led by Finance Minister Nirmala Sitharaman, has clarified the tax treatment of popcorn. It has been decided that pre-packed and labelled ready-to-eat popcorn will attract a 12% GST, while caramelised popcorn (mixed with sugar) will be taxed at 18%.

News Arena Network - Jaisalmer - UPDATED: December 21, 2024, 08:27 PM - 2 min read

GST Council clarifies on popcorn taxation. (Representative picture)


GST Council on Saturday agreed to issue a clarification on taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will attract a 12 per cent tax while an 18 per cent GST will be levied if it is caramelised.

 

There is no change in the tax rate of popcorn and the GST Council has only agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular clarifying the current taxation regime of popcorn.

 

"Ready-to-eat popcorn", which is mixed with salt and spices, and has the essential character of namkeens currently attracts a 5 per cent GST if it is not pre-packaged and labelled.

 

If it is supplied as pre-packaged and labelled, a 12 per cent GST is levied.

 

However, when popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionary, and would therefore be classifiable under HS 1704 90 90 and attract an 18 per cent GST, as per the clarification. 

TOP CATEGORIES

  • Nation

QUICK LINKS

About us Rss FeedSitemapPrivacy PolicyTerms & Condition
logo

2025 News Arena India Pvt Ltd | All rights reserved | The Ideaz Factory