Government sources claim, popcorn sold in movie theaters will attract 5 percent GST

New Delhi| Many important decisions have been taken in the recently held GST Council meeting. But taxes imposed on popcorn in three different slabs are in discussion. Now it has been told by government sources that, popcorn sold in movie theaters will also attract 5 percent GST like restaurants.

GST on popcorn has been clarified in the 55th meeting of the GST Council. In fact, a request was received from Uttar Pradesh to clarify the classification and GST rate applicable on popcorn containing salt and spices. There has been no increase in the GST rate on popcorn.

He explained that if popcorn is sold with a film ticket, it will be treated as a composite supply and since the main supply in this case is the ticket, it will be taxed as per its applicable rate. According to sources, popcorn is sold openly in cinemas, and therefore it will continue to be subject to the same five percent rate as ‘restaurant service’. However, for this popcorn will have to be supplied freely.

Under GST, popcorn containing salt and spices is classified as salty and is taxed at five percent. When it is pre-packed and sold with labels. On which 12 percent GST was levied.

All sugar confectionery except a few items attract 18 per cent GST, and hence popcorn containing caramelized sugar is subject to GST at the rate of 18 per cent. Government sources said the council recommended issuing clarifications to resolve classification disputes over popcorn containing salt and spices.