Memes flood the internet as GST Council confirms 18% tax on caramelised popcorn

GST Council clarified popcorn tax rates with no changes; social media buzzed with memes on caramelised popcorn.

The GST Council, in its 55th meeting on Saturday, clarified the tax structure on popcorn, stating there would be no changes to the existing rates.

Taxation details unveiled

The GST Council clarified popcorn tax rates, sparking memes on social media. (Pixabay)

Union Finance Minister Nirmala Sitharaman explained the rationale behind the GST rates during the meeting. She stated, “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.”

Under the current structure, pre-packed and labelled ready-to-eat snacks, including popcorn, are subject to a 12% GST. Meanwhile, caramelised popcorn attracts a higher rate of 18%. For unpackaged and unlabelled popcorn mixed with salt and spices, the GST is set at 5%.

The Central Board of Indirect Taxes and Customs (CBIC) will soon issue a circular to provide further clarity on these tax rules. The council emphasised that the tax differentiation arises from the varied characteristics and preparation methods of popcorn.

Social media reacts with wit and humour

One user took a playful jab at the GST Council, sharing a meme that depicted the complexities of calculating tax on popcorn. Another quipped, “Suddenly #Popcorn got so much attention. #ACTII is so popular without advertisements.”

Some users went beyond popcorn, humouring the situation by suggesting other food items for taxation.

Here are some more hilarious memes that you should check out:

The internet’s reaction has ranged from witty jabs to outright laugh riots. Memes featuring calculations on caramelised versus salted popcorn are trending, with users tagging the Finance Minister in their posts.