Popcorn Taxation Clarified at GST Council Meeting
At its 55th meeting, the GST Council clarified the tax structure for popcorn, sparking a wave of social media memes and discussions. Union Finance Minister Nirmala Sitharaman explained that caramelised popcorn attracts an 18% GST due to its classification as a sugar confectionery, distinguishing it from salted or plain popcorn.
Tax Rates for Different Popcorn Categories
The Council announced no changes to the existing tax rates but provided clarity on the differentiation:5% GST for unpacked and unlabelled salted popcorn.12% GST for pre-packed and labelled ready-to-eat popcorn.18% GST for caramelised popcorn, attributed to its added sugar content.
Social Media Reacts with Memes
The announcement led to a meme fest online, with users humorously dissecting the complexities of popcorn taxation. Many joked about the seemingly disproportionate tax on caramelised popcorn, while others created witty takes on the varying rates for different popcorn types.
Understanding the Taxation Rationale
The Council’s decision stems from the classification of caramelised popcorn as a sugar confectionery, aligning it with GST rules for similar products. Salted and plain popcorn, in contrast, fall under lower tax brackets due to their simpler composition and lower processing requirements.
The memes reflect a mix of humor and curiosity about the intricate tax system, showcasing how even small policy decisions can engage the public in unexpected ways.
