GST council explains difference in tax rates between salted and caramel popcorn

The council stated that pre-packed, labelled, ready-to-eat snacks would be subject to a 12 percent tax, while caramelized popcorn would have an 18 percent GST.

Published on: Dec 21, 2024, 22:09:40 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

The GST Council on Saturday decided to issue a clarification regarding the taxation levied on popcorn, stating that there would be no change in the existing rate, reported news agency PTI.

Union finance minister Nirmala Sitharaman speaks at the 55th meeting of the GST Council (ANI)

The council stated that pre-packed and labelled ready-to-eat snacks would be subject to a 12 percent tax, while caramelized popcorn would attract an 18 percent GST.

Also Read: GST council defers tax cut on insurance premiums as Nirmala Sitharaman awaits IRDAI feedback

During the 55th council meeting, union finance minister Nirmala Sitharaman said, “Salted, caramelised, plain popcorn is being sold as namkeen in certain states. Caramelised popcorn comes with added sugar, so the treatment rate is different from namkeen.”

They also confirmed that the Central Board of Indirect Taxes and Customs (CBIC) would issue a circular to clarify the existing taxation rules for popcorn.

Also Read: GST council GoM to meet soon on lowering taxes for insurance premiums

"Ready-to-eat popcorn," which is mixed with salt and spices and has the characteristics of namkeens, currently attracts a 5 percent GST if it is not pre-packaged and labelled. If it is pre-packaged and labelled, the tax rate rises to 12 percent.

Also Read: U.P.’s GST revenue grows 15%, surpassing national average

However, when popcorn is mixed with sugar (caramel popcorn), its classification changes to that of sugar confectionery, falling under HS code 1704 90 90, and is therefore subject to an 18 percent GST, the council stated.

The council also reduced the rate on fortified rice kernels to 5 per cent. It was decided that black pepper and raisins supplied directly by farmers would be exempt from GST.

Finance Minister Nirmala Sitharaman also announced that several key decisions had been deferred, such as the decision on whether rates on insurance premiums will be reduced.

No decision was reached on whether GST will be applicable for food delivery platforms such as Swiggy and Zomato as well.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Get the latest India News, breaking headlines and real-time updates from across the country. Stay informed about politics, government policies, crime, weather and major national developments.