GST Council to make clear charges on ready-to-eat popcorn

The GST Council Adjustment Committee, comprising central and state income officers, has proposed clarifications to take away ambiguities surrounding the tax remedy of ready-to-eat popcorn, in a bid to streamline its classification and relevant GST charges. These suggestions ought to present aid to companies and be certain that tax charges are aligned with product traits.

Prepared-to-cook or ready-to-heat corn kernels blended with spices, oil or flavorings ought to fall below HS 2008, which covers ready or preserved edible plant components, and are topic to GST, in line with the committee. by 12 %.

Plain popcorn, obtained from popped corn with out components, falls below HS 19041090 and is topic to 18 % GST – a class relevant to most merchandise, apart from particular objects like puffed rice or flattened rice, that are taxed at 5 % GST.

The issue primarily revolves round ready-to-eat popcorn blended with salt and spices. The committee really helpful classifying these merchandise below HS 2106 90 99. These could be topic to five % GST if bought unpackaged or not prepackaged and labeled, and 12 % GST if bought. are bought in prepackaged and labeled varieties.

Moreover, caramel popcorn or popcorn blended with sugar, modifying its character as a candy confectionery, could be labeled below HS quantity 1704 90 90 and taxed at 18 % GST.

To resolve any lingering disputes, the committee prompt regularizing previous points “as is,” with no retrospective modifications. If the GST Council accepts these suggestions, it won’t solely make clear tax charges, however might additionally make sure sorts of ready-to-eat popcorn extra reasonably priced for shoppers.

The fifty fifth GST Council is scheduled to fulfill in Jaisalmer, Rajasthan on December 20-21 to take up this difficulty.