For the past year, there has been a major dispute regarding the GST rates on popcorn. Earlier, there were different tax rates for salty and spicy popcorn, and separate rates for packed and unpacked popcorn. This confused both consumers and traders. The common question was: why should one product have different tax rates? Now, this confusion has finally ended. In the new GST rates announced by the GST Council, the tax slabs for popcorn have been clearly defined, giving relief to consumers.
According to the new rules, if popcorn is made with only salt and spices, it will attract just 5% GST. This will apply to both unpacked and packed popcorn. However, if the popcorn is caramelised or sweetened, it will fall under the “sugar confectionery” category and attract 18% GST. Earlier, there were two different tax rates — unpacked salty popcorn had 5% GST, while packed and labelled popcorn had 12% GST. This created confusion among traders and customers. Now, the only difference will depend on whether sugar is added or not.
Dispute Over Cream Buns Also Resolved
After popcorn, the issue regarding cream buns has also been settled. The matter became highlighted last year when a trader raised it directly with Finance Minister Nirmala Sitharaman. Previously, cream buns were categorised as pastries and taxed at 18%, while separate buns and cream attracted only 5% GST. Under the new rules, this mismatch has been removed. Now, cream, buns, and cream buns will all have a uniform 5% GST. This change will benefit the bakery industry and provide relief to consumers.
Big Decision on Online Gaming and IPL Tickets
The meeting also made significant decisions regarding online gaming, betting, and IPL match tickets. Online money gaming, betting, gambling, horse racing, lotteries, and casinos will now attract a 40% GST.
Similarly, tickets for major sporting events like the IPL will also have a 40% GST. However, this higher rate will not apply to recognised sporting events. If a sporting event ticket costs up to ₹500, it will remain tax-free, but tickets priced above ₹500 will attract an 18% GST.
Also Read-: GST Council 56th Meeting: Major Tax Relief on School Supplies, Daily Essentials, and Electronics
GST Council’s Major Changes, Relief for Consumers
The GST Council has removed the 12% and 28% tax slabs. Now, only two main slabs remain — 5% and 18%. This change will directly benefit consumers, as many essential items, some bikes, cars, and insurance policies will become cheaper.