Recently, in the fifty fifth assembly of the GST Council, the problem of GST on popcorn got here into limelight. In the assembly, it was stated that the worth of popcorn must be determined based on its taste and packaging. It was advised that ready-to-eat popcorn will entice 5 p.c tax, pre-packaged popcorn will entice 12 p.c tax and caramel popcorn will entice 18 p.c GST.
Also, it was determined to extend the GST fee on drinks to 35 p.c. However, the outdated fee of GST i.e. 5 p.c will stay relevant on popcorn bought brazenly in cinemas. The cause for larger tax on caramelized popcorn is as a result of it is categorized as a sugar confectionery.
This much is the GST on these meals objects
Generally, meals in movie theaters is dearer than tickets, as a result of multiplexes get 35 p.c of their earnings from here. Apart from popcorn and drinks, earlier 18 p.c GST was imposed on different meals objects available in theaters like popcorn, burgers, samosas, sandwiches, nachos, which was diminished to five p.c in 2023. That means, besides popcorn and drinks, consuming these meals objects in theaters shall be much less heavy on the pocket.
Combo might need to be taken closely
One ought to keep away from shopping for combo packs in movie theaters because it comes below the purview of composite provide. That means product and service are provided collectively and each are taxed individually. Even although the tax on different meals objects has been diminished to five p.c, in the event you purchase it together with a movie ticket, you’ll not get the good thing about 5 p.c low cost. Then this meals merchandise shall be taxed on the fee of 18 p.c. Overall, if you’re going to get pleasure from your favourite movie in theatres, then it is essential to spend a bit extra judiciously on meals objects.
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