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Popcorn, in loose form, sold in movie theatres to attract 5% GST
Popcorn sold in loose form in movie theatres will continue to attract a GST rate of 5 per cent. If popcorn is sold together with a movie ticket, it will be taxed at the rate applicable to the ticket. Popcorn mixed with salt and spices is classified as namkeen and also attracts a 5 per cent tax.
Popcorn, in loose form, sold in movie theatres will continue to attract GST at a 5 per cent rate, same as in restaurants, government sources said. However, if the popcorn is clubbed and sold together with a movie ticket, the supply would be treated as a composite supply and taxed as per the applicable rate of the principal supply, which is the ticket.
The 55th meeting of the GST Council clarified the GST applicability in popcorn after it received a request from Uttar Pradesh to clarify the classification and GST rate applicable to popcorn mixed with salt and spices.
There has been no increase in the GST rate on popcorn.
Popcorn is served to customers in theatres in loose form and hence will continue to attract a rate of 5 per cent as applicable to 'restaurant service' as long as supplied independently of the cinema exhibition service, according to the sources.
Under GST, popcorn mixed with salt and spices is classified as namkeen and attracts a 5 per cent tax. When it is pre-packed and labelled, the rate is 12 per cent.
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