Caramelized Popcorn GST Update: After a lot of buzz on social media, the government has clarified that popcorn sold in cinemas will continue to be taxed at 5% GST, just like in restaurants. This was confirmed during the 55th meeting of the GST Council, where they explained how popcorn will be taxed in three different ways.
1. Salted and Spiced Popcorn: This type is classified as a snack and will have a 5% GST rate.
2. Packaged and Labeled Popcorn: If popcorn is sold in a package with a label, the GST rate increases to 12%.
3. Caramelized Sugar Popcorn: For popcorn that is flavored with sugar, the GST rate jumps to 18%.
So, caramelized popcorn will be subject to an 18% GST rate.
