Separate GST rate for caramelised popcorn draws economists' ire

FM said items with added sugar have even higher GST

- ASIT RANJAN MISHRA

Economists have criticised the decision of the Goods and Services Tax (GST) Council to have an 18 per cent GST for caramelised popcorn, saying it will further complicate the indirect tax system.

After the Council meeting in Jaisalmer, the finance ministry in a statement said ready-to-eat popcorn, mixed with salt and spices, attracted a 5 per cent rate and 12 per cent if supplied as pre-packaged and labelled.

"However, when popcorn is mixed with sugar thereby changing its character to sugar confectionery (e.g. caramel popcorn), it would attract 18 per cent GST. It has been decided to regularise the issues for the past on "as is where is" basis," it said.

It further noted there was no new imposition of any tax in this regard and was merely a clarification as certain field units were demanding different tax rates on the same.

"Therefore, it is a clarification being recommended by the GST Council to settle the disputes arising out of interpretation," it added.