Popcorn is the most popular snack when it comes to movie time. And this humble-looking snack recently became the center of discussion when Finance Minister Nirmala Sitharaman announced differentiated tax rates on popcorn. Scroll down to read the details
At the 55th meeting of the GST Council on Saturday chaired by Finance Minister Nirmala Sitharaman, the differentiated tax rates on popcorn were announced recently. According to the Council, ready-to-eat popcorn that is prepackaged and mixed with salt and spices will be taxed at 12%, while caramelized popcorn will attract 18%.
“When popcorn is mixed with sugar (caramel popcorn), its basic characteristics are changed to confectionery with sugar and hence subject to GST at the rate of 18 per cent,” the finance minister clarified. Take a look at the breakdown:
Salty Popcorn No Labels No Packaging: GST 5%.
Pre-packaged and labeled ready-to-eat popcorn: 12% GST
Caramelized Popcorn: 18% GST
Some users jokingly speculated about potential tax differences on drinking water. “What’s next? GST on drinking water is 5% if you drink, 12% if you swallow and 18% if you spill,” quipped one person.
The decision also drew attention to wider concerns about tax rates on essential goods and everyday items. Another user compared the taxation of popcorn to the 18% GST on used cars, saying: “Popcorn with 18% GST makes sense as it’s a luxury snack, but why the same rate for old cars that are often bought by the less privileged?’
User commented: “Kya aapke popcorn mein namak hai?” Meanwhile, others advised buying DIY popcorn to avoid the higher tax, suggesting, “The only way to legally avoid the popcorn tax is to buy ACT II and enjoy it tax-free.”
The news went viral on social media and led to a flood of memes surrounding the same, as well as sparking a debate about the Council’s views. Scroll down to see the viral memes:
