Social media flooded with memes over 18 per cent GST on caramelised popcorn

Memes flooded the internet as the GST Council confirmed an 18 per cent tax on caramelised popcorn. Here are some of the most hilarious memes

The GST council held its 55th meeting on Saturday, confirming that it had affected no changes to the existing GST rates on popcorn. 

 

However, Finance Minister Nirmala Sitharaman also explained that caramelised popcorn with added sugar will be taxed differently than salted and plain popcorn, as caramelised popcorn is classified as sugar confectionery.

 

While explaining her rationale behind the GST rates during the meeting, she said,  “Salted, caramelised, plain popcorn is being sold as namkeen in certain states. Caramelised popcorn comes with added sugar, so the treatment rate is different from namkeen.”

 

According to the current GST structure, pre-packed and labelled ready-to-eat snacks, including popcorn, attract 12 per cent GST. 

 

The GST rate of caramelised popcorn is 18 per cent which is higher than salted and plain popcorn. On the other end, the GST rate on unpackaged and unlabelled popcorn mixed with salt and spices is 5 per cent.

 

A circular will soon be issued by the Central Board of Indirect Taxes and Customs (CBIC) giving further clarity on these tax rules. According to the council, the tax differentiation arises from the varied characteristics and preparation methods of popcorn.

Netizens shared hilarious memes

The recent announcement by the GST council to put different taxes on popcorn spanning from 5% to 18% attracted outrage among netizens.

 

The decision has sparked hilarious memes on social media where netizens shared their creative takes on the GST levied on popcorn.

 

One user wrote, "Russia developed vaccine for Cancer China made a cure for Diabetes USA developed AI robots Meanwhile India has found 3 different tax components in Popcorn"

 

 

Attaching the video of Nirmala Sitharama explaining different GST rates on popcorn, another user said, "Watching India's Finance Minister explain the GST rate on different types of popcorn (salted, caramel), itself deserves to be enjoyed with popcorn."