GST Council meeting: 18% tax on caramelised popcorn, netizens share memes saying, went to Jaisalmer to discuss popcorns

The GST Council meeting conducted in Jaisalmer on Saturday discussed the taxation of popcorn. The pre-packed and labelled ready-to-eat snacks will attract a 12 per cent tax, whereas caramelised popcorn will attract an 18 per cent GST. The tax rate levied on fortified rice kernels has been slashed to five per cent.

The tax rate on popcorn has not changed, and the GST Council has only agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular clarifying the current taxation on popcorn.

Currently, namkeens attract a 5 per cent GST if they are not pre-packaged and labelled. “Read-to-eat popcorn” has te essential character of namkeens, which mixed with salt and spice.

A 12 per cent GST is levied if it is supplied as pre-packaged and labelled.

However, caramelised popcorn is mixed with sugar, categorising it as sugar confectionery, and would therefore be classifiable under HS 1704 90 90 and attract an 18 per cent GST, according to GST Council clarification.

Following this decision, social media has responded with memes over GST on popcorn.

One of the users to a funny jibe at the GST Council and said,

“The great great #GSTCouncil went all the way to Jaisalmer just to discuss & finalize the GST rate on popcorns! What an efficient use of taxpayer money & taxpayer sponsored resources,” another user added.

Another user shared a meme suggesting the difficulty to calculate GST on popcorn.

Another user added, “Suddenly #Popcorn got so much attention #ACTII is so popular without advertisements.”

Another netizen said that the Finance Minister forgot to levy taxes on panipuris.

“Madam FM forgot to levy #GST on Panipuris. #GSTCouncilMeeting #GSTCouncil #GSTCouncilMeet #PopcornTax #Popcorn.”

Another user said, “After #Popcorn FM should also bring Puffed Rice (Murmura) as well as Flattened Rice (Poha) under GST.”