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.
How much tax to use this Meme ?#PopcornTax pic.twitter.com/4Yx1dTv7FK
— Rahul (@42pi) December 21, 2024
If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor #GSTCouncilMeeting #NirmalaSitharaman #PopcornTax @nsitharaman @FinMinIndia @khurpenchh pic.twitter.com/LUNfTlJSuj
— यादव गौरव (@yadavgaurav0007) December 21, 2024
Suddenly #Popcorn got so much attention #ACTII is so popular without advertisements 😀😃#AgrotechIndia pic.twitter.com/4aN1PYgtb5
— Brajesh Jhawar (@Brajeshjhawar1) December 21, 2024
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.
