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Nirmala Sitharaman's latest GST on popcorn has the internet in riots! The beloved movie-time snack, caramel popcorn, has been a go-to in and outside the movie theatres! However, recently, the snack has been associated with something completely unrelated to movie-time joy—taxes, or better yet, GST!
Before we get into what GST on popcorn in India would mean for you, we cannot help but decode the Marie Antoinette of this all. From ‘Let them eat cake’ to ‘Let them eat namkeen’, this historic line never stops being relevant!
What does this mean for your movie-time snack—caramel popcorn?
At its 55th meeting, the GST Council addressed Uttar Pradesh's proposal to determine the GST rate for popcorn seasoned with salt and spices, clarifying the GST on popcorn.
The GST on popcorn remains unchanged. As a separate item, popcorn supplied in theatres is subject to the same 5% tax as food served in restaurants. When combined with salt and spices, popcorn is considered namkeen and is subject to a 5% GST levy. There is a popcorn tax hike of 12% if it is pre-packaged and marked! When you buy a movie ticket and popcorn at the same time, the tax on the popcorn can be different. If popcorn is sold with a movie ticket, the two items would be considered a composite supply and subject to the tax rate applicable to the ticket. Those BookMyShow popcorn offers are looking pretty good right now, if you ask us!
Popcorn tax impact 2024
Caramel popcorn, which is popcorn combined with sugar, is classified differently. The explanation from the council states that an 18% caramel popcorn GST rate will be applied since the simple adaptation transforms it into sugar confectionery. So, the next time you argue about the culinary complexities of mixing salt and sugar, be apprised that the GST Council is not interested!
According to FM Sitharaman, "salted, caramelised, plain popcorn is being sold as namkeen in certain states," which is why there is a separate GST on caramel popcorn in different jurisdictions. The rate is treated differently for caramelised popcorn compared to namkeen since caramelised popcorn has extra sugar.
The popcorn tax hike, drawing price wars on simply adding sugar to a snack, may sound ludicrous, but India has a unique history of equally bizarre-sounding taxations. Imagine paying 18% GST on growing a moustache, also known as the Travancore tax, or the lovely colonial penalty of building a house with more windows, which in turn increased your tax liability! That extra hundred spent on popcorn is looking pretty tame if you ask us!
However, if you were looking for a nudge in the coming new year to maybe pivot to healthier snacks, the popcorn tax hike might just be the step in the right direction! Consider this: Caramel popcorn contains a significant amount of sugar due to its high salt, syrup, and butter content. Thirty calories are included in one cup of desiccated popcorn. Five or six cups of regular-sized popcorn at the movies might add another 150 to 180 calories to your diet. Popcorn with butter has 30 grammes of fat and more than 300 calories, even if it's the same size. Caramel syrup adds 45 calories per tablespoon to the calorie total. Movie theatre popcorn is bad since the amount of calories, sugar, salt, and fat increases as the size increases. High fructose corn syrup (HFCS) is a potentially unhealthy ingredient in caramel popcorn; it is far sweeter than glucose or ordinary sugar. Insulin resistance increases in correlation with HFCS levels. Maybe Ms. Sitharaman was thinking about the increase in insulin resistance for fellow citizens after all!
Healthy alternatives to popcorn
If you are currently on the lookout for low GST and low sugar options, we have the perfect list of snacks for you that will pinch your pocket and your gut a little less! Here’s how to successfully evade the GST on popcorn with these (namkeen only) snacks!
- Roasted chickpeas are a low-calorie snack that’s perfect for those on a high-protein, low-fat diet. Protein, carbs, and fibre are all abundant in these foods. Chickpeas, together with other nutrients and minerals, help form and maintain strong bones.
- As a substitute for popcorn, pop-popped millets (such as ragi, bajra, or jowar) are a terrific option since they are both cereal foods and carbs. In terms of positive effects on health, millets are superior. As a result of their high nutritional density and high fibre content, they are ideal for a nutritious evening snack.
- A healthier and better snack option is makhana. In comparison to regular salted popcorn, they are lower in calories and packed with calcium. Lotus seeds, similar to popcorn, may be seasoned with a variety of ingredients, such as salt, pepper, peri-peri mix, and more.