Govt ends debate on Popcorn GST: Know new taxes for popcorn & cream buns

New Delhi: The 56th GST Council has given its recommendation on the rate rationalisation of GST slabs. In this backdrop, the GST on popcorn and sweet buns is set to change.

Last year, a controversy erupted over the GST applicable to popcorn. It had become a hot topic of discussion and created a buzz when the GST Council levied different tax rates for multiple varieties of popcorn.

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The 56th GST Council meeting has put an end to this debate by approving a new rate structure on September 3 that is set to be implemented on September 22.

Under the new GST rates, popcorn mixed with salt and spice is set to attract 5 percent GST. The new rate is applicable to the popcorn that is sold loose or prepacked and labeled. If the popcorn is caramel popcorn, then it is set to attract 18 percent under the sugar confectionary category.

The erstwhile rate structure got criticised as the spiced/salted popcorn attracted 5 percent GST when it was sold loose and 12 percent if the popcorn was sold in a prepackage and labeled.

The GST criteria before the new GST decision came were on the basis of whether added sugar was present or not.

A similar controversy came up last year over the GST rate on cream buns. A businessman in one of the interactions with the finance minister brought up an issue faced by the food industry over the inconsistencies in tax rates. Cream Buns were place under the bracket of 18 percent GST, as they came under the pastry category. However, buns and creams were separately taxed at 5 percent in the old GST regime.

Now, that the recommendation have been made by the GST Council, cream buns are now set to attract tax 5 per cent GST.