GST on Caramel Popcorn in Theatres Remains at 5%, Govt Clarifies

The GST on caramel popcorn sold in theatres remains at 5%, the Indian government has clarified. This decision comes after concerns were raised regarding the tax rate on snacks sold in cinemas. While some stakeholders believed that the rate should be higher due to the added value of packaging and preparation, the government confirmed that caramel popcorn, regardless of its enhanced form, qualifies for a 5% GST under the current tax structure for movie theatre food items. This clarification aims to reduce ambiguity and offer clarity to the stakeholders involved in the theatre food business, ensuring that consumers and businesses remain informed about tax obligations in this specific sector.