The long-running debate over GST on popcorn—whether salted or caramel, loose or packaged—has finally been resolved by the GST Council under GST 2.0.
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Salted/Spiced Popcorn: 5% GST, whether loose or pre-packaged, as it retains the “essential character” of a basic snack.
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Caramel Popcorn: 18% GST, classified as a sugar confectionery and considered “non-essential.”
Previously, salted popcorn faced 5% GST loose and 12% packaged, while caramel popcorn was taxed at 18% regardless of packaging. This dual system caused confusion among cinema halls, multiplexes, and vendors.
The issue dates back to GST introduction in 2017, with debates resurfacing in 2018 when multiplexes argued that freshly prepared popcorn should attract 5% GST like a restaurant service, not 12% as a packaged FMCG item. Subsequent years saw multiple court challenges and lobbying by the Multiplex Association of India.
The GST Council’s rationalisation in 2023–2024 finally resolved the matter, aligning tax rates with popcorn’s flavour and clarifying uniform treatment across venues.
This move aims to simplify taxation for vendors and cinemas while ensuring a fair approach for both basic and sweetened snacks.
