The GST Council has ruled that all varieties of popcorn will now attract a uniform 5% GST under the new regime.
The decision ends years of confusion over how popcorn should be taxed. Earlier, loose salted popcorn was charged 5% GST, packaged or branded variants attracted 12%, while caramel-flavoured popcorn drew 18%.
Multiplex operators had long sought uniform treatment, arguing that popcorn sold at cinema counters is “freshly prepared” and should be taxed like restaurant services at 5%, instead of being clubbed with FMCG (Fast-Moving Consumer Goods) products.
The GST Council partly addressed this issue in 2019, but the split structure continued to spark disputes and legal challenges.
With the latest ruling, the GST Council has done away with distinctions based on packaging, branding, or sugar content, bringing all varieties of popcorn—salted, caramel, loose, or pre-packaged—under a single 5% GST slab.
