Memes Go Viral as GST Council Imposes 18% Tax on Caramelized Popcorn

The taxation on popcorn was finally clarified at the 55th GST Council meeting on Saturday, with no changes to prevailing rates. Union Finance Minister Nirmala Sitharaman explained the tax rationale: “Salted, caramelised, plain popcorn is being sold as namkeen in certain states. Caramelised popcorn comes with added sugar, so the treatment rate is different from namkeen.

Under the present arrangement, prepacked, labeled ready-to-eat snacks, such as popcorn, attract 12% taxation. However, caramelised popcorn attracts a higher rate of 18% GST. Unpacked, unlabelled popcorn mixed with salt and spices attracts a tax of 5%. The CBIC will issue a circular soon to explain further the rules. According to the council, this explains why popcorn attracts varying taxation.

Memes poured in on social media soon after the announcement, with people making light of the GST on popcorn. One user mocked the complexity of tax calculation in a meme, and another joked, “Suddenly #Popcorn got so much attention. #ACTII is so popular without advertisements.” Some even proposed additional food items for taxation.

The reaction of the internet went from witty remarks to full-blown laugh riots, where memes were created comparing the tax rates on caramelised and salted popcorn, and many tagged the Finance Minister in their posts.