How much GST on ready-to-eat Popcorn?

The Gujarat Bench of the Authority of Advance Ruling (AAR) has said that to make ready-to-eat (ready to eat) Popcorn, corn grains are heated and mixed with other ingredients such as salt so that it will take 18 percent GST.

GST on Popcorn

New Delhi. Now you need to pay 18 percent GST on ready-to-eat Popcorn. The Gujarat Bench of the Authority of Advance Ruling (AAR) said that to make ready-to-eat Popcorn, corn grains are heated and mixed with other ingredients such as salt, so applying 18 percent GST on it. Hence, the sellers of ready-to-eat Popcorns having GST registration must charge 18% GST.

Relation with GST on roti & Parathas                           

This decision of AAR's Gujarat Bench was made during the hearing of the petition of Jai Jalaram Enterprise, A Surat-based company making Popcorn. Let us tell you that recently a company from Karnataka had filed a petition that in which parathas should also be kept in the range of khakhra, chapati, or roti, and only 5% GST should be taken.

However, the paratha on which the paratha has said to impose 18 percent GST is ready-to-cook, and the packet is closed. It has to be heated before eating. In these cases related to GST, now the Central Government is waiting for clarification.

Logic in GST on ready-to-eat Popcorns

What is the matter - a company sells Popcorn in a plastic closed pack under the registered brand name. The company had started its stand that these are regular maize grains that fall in the category of grains, so it should be imposed at 5% GST.

The Gujarat Bench of AAR has given this decision based on the Supreme Court's previous decisions in the Central Sales Tax Act. The application company argued that despite heating the corn grains, its basic properties do not change.

Also, oil, salt, and turmeric are used in tiny amounts. But in this case, the AAR believed that after roasting Popcorn falls into the ready-to-eat category, it should attract 18 percent GST.

A few days ago, a similar decision was given by the Karnataka Bench of AAR. AAR had placed paratha under 18 percent GST purview and said that it is different from roti.

Know in detail about GST on ready-to-eat Popcorns.

Five percent of GST is applied on bread. The Karnataka Bench said in its decision that roti or puri is ready to be eaten while the paratha has to be heated first so that it will attract 18 percent GST.

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Created on Jul 1st 2020 02:53. Viewed 229 times.

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