How much GST will be levied on popcorn in movie theaters? Know what has been decided on this:

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Popcorn sold in loose form in movie theatres will continue to attract GST at the rate of 5%. The same GST is applicable on restaurants as well. Yes, one thing must be understood that if popcorn is sold along with movie tickets, then the supply will be considered a joint supply and will be taxed at the applicable rate of the main supply, i.e. tickets. According to Bhasha’s news, popcorn mixed with salt and spices is classified as salty under GST and is taxed at 5%. When it is pre-packaged and labelled, its rate is 12%.

Clarification given in the 55th meeting of the Council

According to reports, the GST Council clarified the GST applicability on popcorn in its 55th meeting after it received a request from Uttar Pradesh to clarify the classification and GST rate applicable on popcorn mixed with salt and spices. All sugar confectionery, barring a few specified items, attracts 18 per cent GST, and hence, 18 per cent rate applies to caramelised popcorn.

recommendation to issue clarification

Government sources said the GST Council has recommended issuing clarifications to facilitate resolution of classification disputes on ready-to-eat popcorn mixed with salt and spices. All goods, including food items, are classified under GST according to the Harmonised System (HS) classification, a multipurpose international commodity nomenclature developed by the World Customs Organisation (WCO).

This system is used by more than 200 countries, covering more than 98 percent of international trade. The different GST rates are simply a result of the classification of the item under different chapters of the HS system.