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Curious case of GST on popcorn: A 'namkeen', packaged & sweet saga
The Statesman Bhubaneswar
|April 03, 2025
Popcorn, the ubiquitous snack of movie nights and casual munching, has found itself embroiled in a surprisingly complex tax tale in India.
The Central Board of Indirect Taxes & Customs (CBIC) has recently stepped in to clarify the labyrinthine Goods and Services Tax (GST) rates applied to this seemingly simple treat, revealing a three-tiered structure that distinguishes between the salty, sweet, and packaged varieties.
To bring clarity to ongoing disputes, the CBIC has announced that rate disputes on specific categories of popcorn up to February 14th will be regularised. "In view of the prevailing genuine doubts regarding the applicability of GST rate on ready to eat popcorn mixed with salt and spices, as recommended by the (GST) Council, issue for past period up to 14.02.2025, is hereby regularised on 'as is where is' basis," a recent circular declared.
This move, prompted by requests, followed the GST Council's decision in December 2024 to issue a detailed clarification.
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