The long-running debate over how popcorn should be taxed under the Goods and Services Tax (GST) has finally been settled. At its 56th meeting on Wednesday, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, approved a simplified tax structure for popcorn that will come into effect from September 22.
Last year, popcorn became a hot topic of debate after the GST taxed loose salted popcorn at 5%, packaged at 12%, and caramel at 18%.
The Council has now simplified this structure. Going forward:
- Salted or spiced popcorn will attract a 5% GST, whether sold loose or packaged.
- Caramel popcorn will be taxed at 18%, as it contains sugar and falls under confectionery.
This means the only differentiation now is whether sugar is added or not.
One of the most significant announcements was the simplification of GST slabs. The Council decided to move from the existing four-rate structure of 5%, 12%, 18% and 28% to two primary slabs of 5% and 18%.
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Earlier, cream buns were taxed at 18% as pastries, while buns and cream individually attracted only 5%. The Council has now brought cream buns under the 5% slab.
Even before the GST rates were announced, memes flooded social media. One user joked, “Can someone please just tell me if caramel popcorn will be taxed at 5%, 18%, 20% or 40%? The market will manage the rest.”
#Caramel #popcorn ab 5% ya 18% ya 20% ya 40% GST pe milega utna bata do koi please ????????. Baaki market ko jo karna hai vo karega aaraam se @nishkumar1977 @Sahilpahwa09 @Ashutosh3101 @DipenVora0112 . pic.twitter.com/7H9ikcuiUv
— Javed Hussain (@Javed_M_Hussain) September 3, 2025
Another quipped, “What I really want to know after the GST tax reforms — are caramel popcorn, cheese popcorn and salted popcorn all taxed at the same rate?”
What I really want to know after the GST tax reforms — are caramel popcorn, cheese popcorn and salted popcorn all taxed at the same rate?
— Ira Dugal (@dugalira) September 3, 2025
????
Gnite!
After 40% gst on tobacco etc #GSTReforms pic.twitter.com/CFI8Ud6sR8
— ???????????????? ???????????????????????? (@DilSeMemes) September 3, 2025
GST 1.0 GST 2.0 pic.twitter.com/WsSdoMcKBT
— Memeonomics (@AbinKotera) September 4, 2025
Consumers will see immediate benefits across a wide range of products and services. Essentials such as UHT milk, paneer, butter, cheese, biscuits, juices, and dry fruits will now fall in the 5% or zero-tax category.
Everyday services like gyms, salons, yoga centres and barbers, previously taxed at 18%, will now attract just 5% GST.
Health and life insurance policies have been exempted from GST, providing relief to the middle class. Automobiles also got a boost, with small cars, motorcycles below 350cc, and electric vehicles brought under lower slabs.
The Council introduced a special 40% tax rate on "sin and luxury goods" such as tobacco, bidi, pan masala, energy drinks, high-end vehicles, yachts, and private aircraft. IPL tickets and online money gaming also fall in this slab.
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