GST Council Introduces Differentiated Tax Rates for Popcorn

The GST Council, chaired by Finance Minister Nirmala Sitharaman, has introduced differentiated tax rates for popcorn. Ready-to-eat popcorn, pre-packed with salt and spices, will attract 12% GST, while caramel popcorn, coated with sugar, will be taxed at a higher rate of 18%.

Sitharaman explained that the sugar coating transforms the popcorn into a sugar confectionery, justifying the increased rate.

The decision has sparked confusion and debate, with critics questioning the rationale behind separate tax rates for similar products. The move has also led to humorous comparisons and discussions on broader tax inconsistencies.