GST on Popcorn in India: Tax for Packaged and Loose Forms
Popcorn isn’t just a movie-time snack anymore—it’s a booming retail product sold in malls, cinemas, grocery stores, and online. Whether you sell or consume it, understanding the popcorn gst rate is important for accurate pricing and compliance under GST in India.
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What is the GST on Popcorn in India?
The gst on popcorn in india depends on whether it’s packaged or sold loose, plain or flavored. The GST rate ranges from 5% to 18% depending on how it’s processed and marketed.
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GST Rate on Popcorn – Plain vs. Flavored
| Type of Popcorn | HSN Code | GST Rate |
|---|---|---|
| Loose/plain popcorn (non-branded) | 1005/1102 | 5% |
| Packaged and branded popcorn | 1904 | 12% |
| Flavored or caramelised popcorn | 2106 | 18% |
So, the standard popcorn gst rate varies depending on branding, packaging, and flavoring.
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GST on Caramel Popcorn and Flavored Varieties
If you’re wondering about the gst on caramel popcorn, here’s what applies:
- Since caramelized or flavored popcorn involves added sugar, butter, cheese, or other ingredients, it’s classified as a prepared food product.
- Therefore, the caramelised popcorn gst rate india is 18%, falling under HSN Code 2106.
- This rate also applies to other gourmet or flavored varieties sold in cafes, multiplexes, or premium stores.
GST on Popcorn Sold in Cinemas
Most popcorn sold at movie theatres is:
- Packaged and flavored
- Sold as part of a food and beverage service
Thus, it attracts 18% GST, even though it’s often served fresh. The classification is based on its ingredients and pricing, not whether it’s freshly popped.
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GST for Popcorn Manufacturers and Retailers
If you’re a manufacturer or retailer dealing in popcorn:
- Loose/unbranded popcorn is taxed at 5% (ideal for bulk/raw sellers)
- Packaged popcorn is taxed at 12%
- Flavored popcorn (including caramel, cheese, or spicy) is taxed at 18%
GST Compliance Tips:
- Use correct HSN codes on invoices
- Maintain separate records for raw, packaged, and flavored varieties
- Claim Input Tax Credit (ITC) on packaging material, oil, and flavoring agents
Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!
Frequently Asked Questions (FAQs)
- What is the GST rate on popcorn in India?The GST on popcorn in India is 5% for loose, 12% for packaged, and 18% for flavored or caramel popcorn.
- What is the GST on caramel popcorn?The GST on caramel popcorn is 18%, as it’s treated as a prepared food item.
- Does GST apply to popcorn sold in cinemas?Yes. Cinema popcorn, especially flavored types, usually attract 18% GST.
- Is there GST on homemade popcorn?If sold commercially in packaged or flavored form, GST applies based on the product type.
- Can popcorn sellers claim Input Tax Credit?Yes. Sellers registered under GST can claim ITC on raw materials and inputs used in production.
