GST on Popcorn: Tax Rates, Exemptions, and Classification 2026

India loves popcorn. Whether it is a Sunday matinee at a multiplex, a street-side vendor at a fair, or a branded bag at a supermarket checkout, popcorn is everywhere. For several years, it was also at the center of one of the most discussed GST classification debates in the country.

The 55th GST Council meeting in December 2024 initially introduced a complex three-tier GST system for popcorn. However, the landmark 56th GST Council meeting in September 2025 changed everything. India shifted to a simplified "GST 2.0" two-slab structure, and popcorn was assigned a single, uniform flat rate of 5% across all categories.

As we move through 2026, this flat rate continues to make compliance easier for businesses. This guide covers the current rules, HSN codes you need to use, theater and composite supply rules, Input Tax Credit (ITC) availability, and what vendors need to know.

What is the GST rate on popcorn in India in 2026?

As of 2026, all types of ready-to-eat popcorn attract a uniform 5% GST rate. This standardization applies to loose salted popcorn, pre-packaged popcorn, and caramel popcorn (which historically attracted a much higher 18% rate).

GST on Popcorn at a Glance (Old vs. Current Rates)

The table below shows how popcorn taxation transitioned from the confusing 2024 system to the streamlined structure we use today.

(Source: CBIC Circular No. 247/04/2025-GST; 56th GST Council Press Release, September 2025)

HSN Codes for Popcorn Under GST

Getting the correct Harmonized System of Nomenclature (HSN) code right is essential. It dictates your tax schedule, impacts your GSTR-1 and GSTR-3B filings, and prevents disputes during audits. Here is how popcorn is classified in 2026:

HSN 1005 and 1104: Raw Corn

Raw corn or maize in its natural, unprocessed form falls under HS Code 1005 or 1104. Agricultural produce at this stage carries a Nil GST rate. A farmer selling raw corn to a popcorn manufacturer does not charge GST on that transaction.

HSN 2106 90 99: Ready-to-Eat Savoury Popcorn

This code covers most of the popcorn India actually eats: salted, buttered, cheese-flavored, and spiced. The government confirmed that salted and spiced ready-to-eat popcorn belongs here rather than under confectionery headings. Whether loose or packaged, items under this code now attract a 5% GST rate.

HSN 1704 90 90: Sugar Confectionery (Caramel Popcorn)

When popcorn is fully coated with sugar-based syrups, its fundamental character changes. Caramel popcorn, chocolate popcorn, and similar sweet-coated varieties are classified under HSN 1704 90 90 as sugar confectionery. While this previously meant an 18% tax hit, the September 2025 GST rate rationalization brought it down to a highly favorable 5%.

Which HSN code applies to caramel popcorn for GST?

Caramel popcorn is classified under HSN code 1704 90 90 (sugar confectionery) as per CBIC Circular No. 247/04/2025-GST. In 2026, it attracts 5% GST, massively reduced from its old 18% slab.

GST on Popcorn in Theatres and Multiplexes

Cinemas and multiplexes were previously ground zero for GST confusion regarding popcorn. While the rate for the snack itself has flattened to 5%, the billing method still dictates the final tax applied due to "composite supply" rules. Here is how it works in 2026:

Loose Popcorn Sold Independently

When a cinema hall sells popcorn separately from the ticket at the food counter, it is treated as a restaurant service. Under that classification, loose salted popcorn attracts 5% GST, regardless of the multiplex's location or luxury status.

Popcorn Bundled with a Movie Ticket (Composite Supply)

Many multiplexes offer online combo deals (Ticket + Popcorn) at a discounted price. Under GST Composite Supply rules, if these items are naturally bundled, the transaction takes on the tax rate of the principal supply (the movie ticket).

• Cinema tickets below ₹100 attract 12% GST.

• Cinema tickets above ₹100 attract 18% GST.

If you pre-book popcorn as part of a ticket bundle for a ₹250 ticket, the tax rate on your entire popcorn bundle becomes 18%, not 5%.

Mixed Supply

If the popcorn and ticket are sold together but are not naturally bundled (e.g., an unrelated promotional add-on), it is a Mixed Supply. Here, the highest GST rate among the included items applies to the entire bill.

GST Exemptions on Popcorn: What Is Not Taxed

Not everything in the popcorn supply chain attracts standard GST. Two specific categories enjoy relief:

1. Raw Corn and Maize: Unprocessed raw corn sold by farmers or traders in its natural agricultural form is fully exempt (Nil GST). This applies whether the corn is loose grain or still on the cob.

2. Small Sellers Under the Composition Scheme: Popcorn vendors with an annual turnover below ₹1.5 crore (or ₹75 lakh in special-category states) can opt for the GST Composition Scheme. This allows them to pay a flat nominal tax of 1% on total turnover instead of charging standard GST, though they cannot claim Input Tax Credit (ITC).

Input Tax Credit (ITC) for Popcorn Businesses

Businesses operating under the standard GST Registration scheme can claim ITC on inputs used to manufacture or sell popcorn. Typical qualifying expenses include:

• Raw materials: Corn kernels, edible oils, salt, sugar, caramel ingredients, flavor additives.

• Packaging: Pouches, boxes, labels, and printing services.

• Machinery: Commercial popcorn machines, packing equipment, and refrigeration units.

• Overhead: Rent and utilities for commercial premises, proportional to taxable supplies.

ITC Pro-Tip for 2026: Businesses that previously sold caramel or packaged popcorn at 12% or 18% and now sell at 5% should routinely review their ITC ledgers. If the GST paid on your inputs (like packaging or 18% machinery) exceeds your 5% output liability, you may be eligible to claim a refund under the Inverted Duty Structure provisions of Section 54(3) of the CGST Act.

2026 GST Compliance Checklist for Popcorn Vendors

Whether you operate a small kiosk, a theater chain, or an FMCG snack brand, here are the essential compliance steps for 2026:

1. Classify your product correctly: Use HSN 2106 90 99 for salted/savory popcorn and HSN 1704 90 90 for caramel/sweet-coated varieties.

2. Charge 5% GST: Ensure your POS systems, billing software, and MRP labels universally reflect the 5% rate for standalone ready-to-eat popcorn.

3. Audit Theatre Billing: For cinemas, clearly separate physical counter sales (5% as a restaurant service) from online ticket bundle sales (which take the ticket's 12% or 18% rate).

4. Filing Returns: Report the outward supply of popcorn under the correct HSN in your GSTR-1 and reconcile ITC claims carefully in GSTR-3B.

Frequently Asked Questions (FAQs)

Q: What is the current GST rate on popcorn in India in 2026?

A: Since the rate rationalization in late 2025, all standalone types of ready-to-eat popcorn (loose, pre-packaged, salted, or caramel) attract a uniform 5% GST.

Q: Is caramel popcorn taxed differently from salted popcorn?

A: Not anymore. Before September 2025, caramel popcorn attracted 18% GST. Today, it shares the same 5% tax bracket as salted popcorn, though it retains a different HSN code (1704 90 90).

Q: What GST applies to popcorn at a movie theater?

A: Loose popcorn sold separately at the food counter is treated as a restaurant service (5% GST). If popcorn is part of a bundled online "ticket-plus-snack" deal, composite supply rules apply, and the rate depends on the movie ticket price (12% or 18%).

Q: Is any popcorn fully exempt from GST?

A: Yes. Raw corn and maize in their unprocessed agricultural form carry a Nil GST rate. Once popped or processed, it becomes taxable.

Q: Can small popcorn vendors avoid GST registration?

A: Vendors with an annual turnover below ₹20 lakh (₹10 lakh in special-category states) are legally exempt from mandatory GST registration. Those earning up to ₹1.5 crore can opt for the simplified Composition Scheme at a 1% tax rate.

Conclusion

Popcorn is a simple snack with a surprisingly complex tax history. After navigating a chaotic three-tier structure, the GST Council finally flattened the landscape in late 2025. In 2026, the rule is simple: 5% GST across the board for all ready-to-eat popcorn.

For businesses, the primary focus is now on maintaining accurate HSN code classifications, optimizing Input Tax Credits, and managing how combo deals are billed at theater counters.

Need help? If you are a popcorn business owner unsure about your GST classification, HSN codes, or ITC eligibility, our team at GSTRegistration.co can help. Get expert guidance on GST compliance without the jargon.