GST On Popcorn: Finance Minister Nirmala Sitharaman Clarifies Tax Slabs And Controversy

The GST Council’s recent clarification on popcorn taxation has sparked a social media debate and criticism from the opposition. Congress questioned the “absurdity” and growing complexity of the GST system, urging the Modi government to consider a complete revamp with GST 2.0. Finance Minister Nirmala Sitharaman addressed the issue at the 55th GST Council meeting, explaining that: Plain popcorn mixed with salt and spices attracts 5% GST when not pre-packaged and labelled, and 12% GST if pre-packaged and labelled.

Caramel popcorn is classified as sugar confectionery and attracts 18% GST under HS 1704 90 90. The clarification aims to provide transparency on popcorn’s varied tax slabs, but it has reignited debates over the complexity of the GST system.