Dec 21, 2024 10:09 PM IST
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.
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.
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.
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.
“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.
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.
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