Popcorn Confusion Cleared! CBIC Clarifies Caramel Also at 5% GST Rate, Not 18%
CBIC corrects Rajdeep Sardesai: All popcorn varieties, including caramel, will now attract a uniform 5% GST
GST on popcorn - Caramel popcorn GST rate- gst council meet - taxscan
GST on popcorn - Caramel popcorn GST rate- gst council meet - taxscan
The Goods and Services Tax (GST) on popcorn became the subject of an online debate on Thursday after senior journalist Rajdeep Sardesai posted on X that caramel popcorn would be taxed at 18 percent while salted or spiced popcorn would attract 5 percent GST.
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In his post, Sardesai wrote:
“The POPCORN debate has been resolved at last! *Salted or spiced popcorn will now attract a uniform 5% GST, whether it's sold loose or in pre-packaged form. *Caramel popcorn will be taxed at 18%. Bring on the salted popcorn folks!”
The message quickly gained traction on social media, drawing thousands of views and sparking a flurry of reactions from users. Many questioned whether caramelised popcorn would indeed remain under the higher tax bracket.
The Central Board of Indirect Taxes and Customs (CBIC) soon stepped in to issue an official correction. Quoting Sardesai directly, CBIC posted:
“Dear @sardesairajdeep, All sugar confectionary items will now be taxed at 5%. Kindly refrain from sharing incorrect information. Please see below the latest rates in Annexure II. ”
The CBIC also attached a link to the Press Information Bureau release containing Annexure II of the 56th GST Council meeting held in New Delhi on 3 September 2025. The annexure places all sugar confectionery, which includes caramel popcorn, under the 5 percent GST slab.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, had announced a sweeping rationalisation of GST rates as part of “next-generation reforms.” Essentials and widely consumed food products were brought into a 5 percent slab, while most other goods and services now fall under an 18 percent standard rate.
Popcorn rates have long been debated. In December 2024, the 55th GST Council meeting had specified different slabs: 5 percent for loose popcorn, 12 percent for packaged, and 18 percent for flavoured types. The 2025 reform removed this complexity, making all varieties taxable at 5 percent.
The new rates will take effect on 22 September 2025. For popcorn lovers, whether salted, spiced, buttered, or caramelised, the tax is now a uniform 5 percent.
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