GST on Caramel Popcorn in Theatres: Clarified at 5%

Understanding the GST Rate for Theatre Popcorn

Popcorn sold in theatres is typically provided in a loose form, which qualifies it under the restaurant service category. This classification ensures a reduced GST rate of 5%, applicable when popcorn is supplied independently of cinema exhibition services.

The clarification emerged following the 55th GST Council Meeting, which discussed the GST classification of popcorn mixed with salt and spices. It was reaffirmed that no changes have been made to the GST rate on theatre popcorn.

Key Highlights:

      • GST on Caramel Popcorn: Theatre popcorn, including caramelized variants, remains under the 5% GST slab.

      • No Rate Changes: The GST Council did not introduce any alterations to the tax rate during the recent meeting.

      • Why 5%? Popcorn in theatres is treated as part of restaurant services, qualifying it for the reduced rate.

GST Rate Hike on Used Electric Vehicles

In another update, the GST Council addressed concerns about the 18% GST rate on old and used electric vehicles (EVs), up from the earlier 12%. This move aims to simplify the tax structure by unifying GST rates on all old and used vehicles, ensuring uniformity across categories.

Government officials clarified that the rate standardization was not a new tax introduction but an effort to streamline tax policies.

What This Means for Businesses

For Theatre Owners: This clarification ensures consistent tax treatment for popcorn, keeping customer pricing steady.

For Entrepreneurs Selling Used EVs: While the rate hike to 18% may initially seem burdensome, the simplified structure offers clarity and predictability in tax obligations.

Advoxpert’s Perspective

At Advoxpert, we understand that staying updated with GST regulations is essential for businesses. Whether you’re a theatre owner, a retailer, or a service provider, navigating GST compliance can be complex.

We specialize in providing comprehensive legal and taxation services, including GST registration, compliance, and dispute resolution. If you need expert advice or assistance in understanding GST implications for your business, visit us at advoxpert.com or contact us today.

Stay informed. Stay compliant. Grow your business with Advoxpert.