Popcorn has popped its way from movie theaters to the living rooms of everyday people as TV screens flashed Finance Minister Nirmala Sitharaman announcing an 18% tax on caramel popcorn, compared to just 5% on its unpacked and unlabelled salted counterpart. The revelation left many stunned, with jaws dropping at the sight of three different tax slabs for what is, essentially, the same snack. Experts slammed the decision, social media users started a meme frenzy, and the Opposition highlighted the absurdity. In the chaos, one thing became clear—popcorn, leaving all other snacks behind, had become the latest GST sensation.
The controversy erupted after Finance Minister Nirmala Sitharaman explained varying GST rates for popcorn during a briefing on the GST Council’s 55th meeting. She clarified that pre-packed, labeled ready-to-eat snacks attract a 12% GST, while caramel popcorn, being classified under sugar confectionery, is taxed at 18%. “When you talk outside, it looks silly,” Sitharaman acknowledged, while justifying the distinctions. “Items with added sugar, such as caramel popcorn, are treated differently from salted variants as they fall under a separate classification for sugar confectionery. Salted, caramelised, plain popcorn is being sold as namkeen in certain states. Caramelised popcorn comes with added sugar, so the treatment of rate is different from namkeen,” she said.
So, unpacked and unlabelled salted popcorn: 5% GST. Pre-packed and labelled ready-to-eat popcorn: 12% GST. Caramelised popcorn: 18% GST. The explanation has sparked a wave of memes and criticism on social media, with users mocking the intricate tax slabs.
Congress Slams Govt
The Congress has criticised the Modi government for the growing complexities of the Goods and Services Tax (GST) system, spotlighted by the recent social media uproar over multiple tax slabs for popcorn. Party leader Jairam Ramesh termed the situation “absurd” and questioned whether the government would have the “courage” to overhaul GST and introduce a simplified “GST 2.0.”
Congress leader’s X post:
The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, only brings to light a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax.
GST evasion is significant, input tax…
— Jairam Ramesh (@Jairam_Ramesh) December 22, 2024
Responding to the controversy, Congress leader Jairam Ramesh highlighted systemic flaws in the GST framework, claiming significant evasion, widespread input tax fraud, and the proliferation of bogus companies exploiting loopholes. “The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes, only underscores the deeper issue: a growingly complex system that was supposed to be a ‘Good and Simple Tax,’” Ramesh said.
He cited data from the Directorate General of GST Intelligence (DGGI), revealing ₹2.01 lakh crore worth of GST evasion in FY24 alone. “Tracking of supply chains is weak, the registration process flawed, and compliance requirements remain cumbersome,” he added, while calling for a thorough GST overhaul. Ramesh asked, “With the Union Budget now just 40 days away, will the PM and FM summon the courage to launch a complete overhaul and institute GST 2.0?”
Meanwhile, the Kerala unit of the Congress mocked Sitharaman’s “futile attempt to explain her way out of the GST rate mess using Popcorn example.” The party posted, “She was trying to say that caramel popcorn is sweet; therefore, it is charged 18%.” “By that logic, will she increase the tax on Sweet Pongal to 18% next?” the Congress Kerala said.
Critics Weigh In
Security analyst Sushant Sareen said that India will always be a third-world country if we have a “brainless bureaucracy” and “clueless politicians” who penalise anything that remotely resembles upgrading products. “Apparently for these socialist geniuses, unpackaged popcorn is a necessity, packaged ones are comfort food, and caramelised are luxury,” he said on the new taxation. “Next they will say flavoured popcorn with cheese are sin goods and taxed at whatever ridiculous rate they decide.”
Sareen said that the Good and Simple Tax is neither good nor simple, “it is tax till you kill the golden goose model.” “Even basic common sense on economics escapes these people because socialistic pretensions outweigh everything else,” he added.
Meme Fest And Online Backlash
Social media erupted with witty remarks after the GST Council, chaired by Finance Minister Nirmala Sitharaman, announced differentiated tax rates for popcorn. The decision sparked a wave of humorous responses online, with users questioning the logic of having separate tax slabs for the same product.
Some users speculated jokingly about potential tax distinctions for drinking water. “What next? GST on drinking water—5% if you sip, 12% if you gulp, and 18% if you spill,” one person quipped. Others criticised the lack of uniformity in taxation. “Those advocating ‘One Nation, One Election’ cannot implement a single tax rate for popcorn,” a user commented. “GST on popcorn seems more critical to the government than removing or reducing GST on insurance,” a user remarked.
One user referenced a popular tagline, humorously asking, “Kya aapke popcorn mein namak hai?” Meanwhile, others advised buying DIY popcorn to dodge the higher tax, suggesting, “The only way to legally avoid tax on popcorn is to buy ACT II and enjoy it tax-free.” “Contrast our Finance Minister spending time discussing popcorn GST with foreign FMs debating cryptocurrency reserves,” one critic noted.
18% GST on popcorn 🍿
18% GST on selling old car 🚗 pic.twitter.com/B3sAsjTS4l
— Ex Bhakt (@exbhakt_) December 21, 2024
If arrogance is Taxed, Nirmala Sitharaman will go Bankrupt!
She gave clarification on Popcorn GST in her own style, but why the promised GST reduction on Health insurance is postponed?
Is Healthcare not in Priority list for FM!? #NirmalaSitharaman
— Veena Jain (@DrJain21) December 21, 2024
Guy in Inox/PVR : 1 caramel popcorn tub pls…!!
Nirmala Sitharaman : pic.twitter.com/i8VmI6mdYp
— UmdarTamker (@UmdarTamker) December 23, 2024
What GST Council Said
On Saturday, the GST Council agreed to issue a clarification on taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will attract a 12% tax while an 18% GST will be levied if it is caramelised.
There is no change in the tax rate of popcorn, and the GST Council has only agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular clarifying the current taxation regime of popcorn. ‘Ready-to-eat popcorn,’ which is mixed with salt and spices and has the essential character of namkeens, currently attracts a 5% GST if it is not pre-packaged and labelled. If it is supplied as pre-packaged and labelled, a 12% GST is levied. However, when popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionery and would therefore be classifiable under HS 1704 90 90 and attract an 18% GST, as per the clarification.
