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Why Government has levied extra GST on Caramel Popcorn

HomeLife & StyleWhy Government has levied extra GST on Caramel Popcorn

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Why Government has levied extra GST on Caramel Popcorn

Popcorn is the most popular munching snack when it comes to movie time. And this humble looking snack recently became the centre of discussion when Finance Minister Nirmala Sitharaman, announced differentiated tax rates for popcorn. Scroll down to read the details
At the 55th meeting of the GST Council on Saturday, chaired by Finance Minister Nirmala Sitharaman, recently announced differentiated tax rates for popcorn. According to the council, ready-to-eat popcorn that is pre-packed and mixed with salt and spices will be taxed at 12%, while caramelized popcorn will attract 18%.
“When popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionery, and would therefore attract 18 percent GST,” the Finance Minister clarified. Take a look at the breakdown:
Unpacked and unlabelled salted popcorn: 5% GST
Pre-packed and labelled ready-to-eat popcorn: 12% GST
Caramelised popcorn: 18% GST

Some users speculated jokingly about potential tax distinctions for drinking water. “What next? GST on drinking water—5% if you sip, 12% if you gulp, and 18% if you spill,” one person quipped.
The decision also drew attention to broader concerns over GST rates on essential and everyday items. Another user compared the popcorn taxation to the 18% GST imposed on used vehicles, stating, “Popcorn with 18% GST makes sense since it’s a luxury snack, but why is the same rate for old cars often purchased by the less privileged?”
A user commented, “Kya aapke popcorn mein namak hai?” Meanwhile, others advised buying DIY popcorn to dodge the higher tax, suggesting, “The only way to legally avoid tax on popcorn is to buy ACT II and enjoy it tax-free.”
The news went viral on social media and resulted in a flood of memes around the same and also sparked debate on the take of the Council. Scroll down to see the viral memes:





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