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Popcorn Lovers Alert! GST 2.0 Brings New Rates For Salted vs Caramel
Popcorn Lovers Alert! GST 2.0 Brings New Rates For Salted vs Caramel– Details Here
Popcorn lovers finally have tax clarity! Under the new GST rules, salted or spiced popcorn will be taxed at 5 per cent whether you buy it loose from a stall or in a pre-packed, labelled packet.
New Delhi: Starting September 22, your shopping bills are set to get lighter! The GST Council has approved landmark changes to India's indirect tax system, making several everyday essentials cheaper. Among the most talked-about decisions is the resolution of the long-standing debate on how popcorn should be taxed under GST—finally bringing clarity to both consumers and businesses.
During its 56th meeting this week, the GST Council, led by Union Finance Minister Nirmala Sitharaman, approved a simplified tax structure for popcorn. The new rates will come into effect later this month.
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Popcorn lovers finally have tax clarity! Under the new GST rules, salted or spiced popcorn will be taxed at 5 per cent whether you buy it loose from a stall or in a pre-packed, labelled packet. Caramel popcorn, however, will continue to attract 18 per cent GST since it falls under the sugar confectionery category.
Earlier, the tax rates had confused both sellers and buyers 5 per cent on loose salted popcorn, 12 per cent on packaged versions, and 18 per cent for caramel. The new structure clears the clutter by classifying popcorn simply on the basis of sugar content.
The long-standing confusion over cream buns has finally been resolved. Earlier, they were taxed at 18% as pastries, while buns and cream separately attracted just 5 per cent. With the latest GST changes, cream buns will now be taxed at 5 per cent—the same as regular buns. This move brings uniformity and much-needed relief to the bakery industry.
In a major move, the GST Council has announced a rationalisation of tax slabs, reducing them from four rates—5 per cent, 12 per cent, 18 per cent, and 28 per cent—to just two: 5 per cent and 18 per cent. This change will bring immediate relief to consumers. Essentials like UHT milk, paneer, butter, cheese, biscuits, juices, and dry fruits now fall under the 5 per cent or zero-tax category.
It's not just products but services will also get cheaper. Everyday services such as gyms, salons, yoga centres, and barber shops, earlier taxed at 18 per cent, will now attract only 5 per cent GST.
In a big relief for the middle class, health and life insurance policies have been fully exempted from GST. Automobiles like small cars, motorcycles under 350cc, and electric vehicles have also been moved into lower tax slabs to encourage demand.
On the flip side, luxury and “sin goods” will now attract a steep 40 per cent levy. This includes tobacco, pan masala, energy drinks, high-end cars, yachts, and private jets. Even IPL tickets and online gaming have been pushed into the highest slab.
Source: ZeeNews
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