GST Council clarifies on popcorn taxation, CFO Information, ETCFO
GST Council on Saturday agreed to subject a clarification on taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will entice a 12 per cent tax whereas an 18 per cent GST might be levied whether it is caramelised.
There isn’t any change within the tax price of popcorn and the GST Council has solely agreed that the Central Board of Oblique Taxes and Customs (CBIC) will subject a circularclarifying the present taxation regime of popcorn.
“Prepared-to-eat popcorn”, which is blended with salt and spices, and has the important character of namkeens at the moment attracts a 5 per cent GST if it isn’t pre-packaged and labelled.
Whether it is provided as pre-packaged and labelled, a 12 per cent GST is levied.
Nonetheless, when popcorn is blended with sugar (caramel popcorn), its important character modifications to that of a sugar confectionary, and would due to this fact be classifiable below HS 1704 90 90 and entice an 18 per cent GST, as per the clarification.
