Will popcorn get pricey in film theaters? Here is how a lot GST shall be levied on well-liked snack – India TV

GST on popcorn: Popcorn offered in unfastened kind at film theatres will proceed to draw 5 per cent GST, much like the speed utilized in eating places, based on authorities sources. Nevertheless, if the popcorn is offered bundled with a film ticket, the transaction shall be handled as a composite provide and taxed based on the speed of the principal provide, which on this case is the film ticket.

The fifty fifth assembly of the GST Council clarified the GST applicability in popcorn after it obtained a request from Uttar Pradesh to make clear the classification and GST fee relevant to popcorn blended with salt and spices.

No enhance in GST fee on popcorn

The GST fee on popcorn stays unchanged following the current GST Council assembly. There was no enhance within the GST fee on popcorn.

“Popcorn is served to clients in theatres in unfastened kind and therefore will proceed to draw a fee of 5 per cent as relevant to ‘restaurant service’ so long as equipped independently of the cinema exhibition service,” based on the sources.

Underneath GST, popcorn blended with salt and spices is classed as namkeen and is taxed at 5 per cent. Nevertheless, if the popcorn is pre-packed and labeled, it attracts a 12 per cent GST. All sugar confectionery objects, apart from a couple of specified ones, are taxed at 18 per cent. In consequence, caramelised popcorn falls underneath this class and is taxed at an 18 per cent fee.

Clarification issued to resolve classification disputes

The GST Council really helpful issuing a clarification to assist resolve classification disputes associated to ready-to-eat popcorn blended with salt and spices, based on authorities sources. 

All items, together with meals objects, are labeled underneath GST as per the Harmonised System (HS) classification, which is a multipurpose worldwide items nomenclature developed by the World Customs Organisation (WCO). This method is utilized by over 200 nations, protecting over 98 per cent of the worldwide commerce. The various GST charges are solely consequential to the classification of the commodity underneath completely different chapters of the HS system.

(With PTI inputs)

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