Sat Dec 21 15:32:38 UTC 2024: ## GST Council Clarifies Popcorn Tax Rates: 12% for Pre-packed, 18% for Caramelized

**New Delhi, [Date]** – The Goods and Services Tax (GST) Council today issued a clarification on the taxation of popcorn, resolving ongoing ambiguity surrounding its tax rates. The Council confirmed that pre-packed and labelled ready-to-eat popcorn will be subject to a 12% GST. However, caramelized popcorn will attract an 18% GST due to its classification as a sugar confectionery.

The clarification emphasizes that no changes have been made to existing tax rates. Instead, the Central Board of Indirect Taxes and Customs (CBIC) will release a circular outlining the current tax structure. This clarifies that non-pre-packaged, ready-to-eat popcorn, typically seasoned with salt and spices, will continue to be taxed at 5%. The higher 12% rate applies only to pre-packaged and labelled versions. The distinction in rates for caramelized popcorn stems from its altered essential character, reclassifying it under a higher tax bracket. The council’s clarification aims to provide clarity and ensure consistent application of the GST on popcorn products nationwide.

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