Popcorn sold in theatres to attract 5% GST

New Delhi: Popcorn, in loose form, sold in movie theatres will continue to attract GST at a 5 per cent rate, same as in restaurants, government sources said.

However, if the popcorn is clubbed and sold together with a movie ticket, the supply would be treated as a composite supply and taxed as per the applicable rate of the principal supply, which is the ticket.

Popcorn is served to customers in theatres in loose form and hence will continue to attract a rate of 5 per cent as applicable to ‘restaurant service’ as long as supplied independently of the cinema exhibition service, according to the sources.

Under GST, popcorn mixed with salt and spices is classified as namkeen and attracts a 5 per cent tax. When it is pre-packed and labelled, the rate is 12 per cent. All sugar confectionary, other than a few specified items, attract 18 per cent GST, and hence, caramelised popcorn attracts an 18 per cent rate.