[ad_1]
The GST Council, led by Finance Minister Nirmala Sitharaman, has clarified the tax treatment of popcorn. It has been decided that pre-packed and labelled ready-to-eat popcorn will attract a 12% GST, while caramelised popcorn (mixed with sugar) will be taxed at 18%.
Importantly, there is no change in the existing tax rates. The Council has simply agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular to provide further clarity on the current taxation rules for popcorn.
Under the current system, ready-to-eat popcorn, which is typically mixed with salt and spices and has the characteristics of namkeens, attracts a 5% GST if it is not pre-packaged or labelled. If it is pre-packaged and labelled, the GST rate is 12%.
However, when popcorn is coated with sugar to make caramel popcorn, it takes on the characteristics of a sugar confectionery and is classified under HS code 1704 90 90, which attracts an 18% GST.
Nominations for ET MSME Awards are now open. The last day to apply is December 15, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
[ad_2]
Source link
Better health