Wage disputes over certain categories of popcorn until February 14th will be regularised, the Indirect Tax and Customs Central Committee (CBIC) said. The board also brought out a detailed circular of three layers of different types of popcorn.
“As recommended by the (GST) Council, we have taken the following February 14th, taking into account the general true doubts regarding the applicability of ready-to-read GST rates for ready-to-read popcorn mixed with salt and spices. The question up until now is “As as as as as as” Where is the “basic” of the CBIC circulation? Based on requests from Uttar Pradesh, at the meeting on December 21, 2024, the Council decided to issue a circular.
Furthermore, the round revealed that being ready to eat popcorn mixed with salt and spices attracts 5% GST when loosened. If you are ready to eat popcorn mixed with salt and spices, the rates will be fed as packaged and labeled. “It has the essential character of Nam Keen,” the board said, justifying the 12% rate. However, mixing popcorn with sugar and changing its personality to sugar candy (such as caramel popcorn) will attract 18% GST.
There are no new tax levies
The CBIC has already made clear that there is no new tax levies in this regard, and that it is merely a clarification as certain field units require different tax rates for the same ones. Therefore, the GST Council is a clarification recommended by the GST Council to resolve disputes arising from interpretations, the board said.
Previously, experts said that consuming loosely salted popcorn in cinemas can attract up to 18% of GST. The GST rate for popcorn purchased along with the movie ticket is 12% or 18% based on ticket price if the bundled supply meets the combined supply test.
Subsequently, government sources say that popcorn is generally offered to loose-shaped theatre customers, and therefore falls under “restaurant services” as long as it is “supplied independently of film exhibitions.” He said he will continue to attract a 5% percentage of the company. Application of the final section of the sentence can raise the GST to 12 or 18% for loose salted popcorn.
Many theatres, especially the Multiplex, offer patrons online ticket bookings. Purchase online tickets come with the option to purchase popcorn, snacks and drinks. Offers usually come with discounts, making the whole transaction appealing. Such a supply could be “combined supply” or “mixed supply” from a tax perspective. Note that movie tickets under £100 attract 18% GST, with over 12% GST over £100.
