Placing order for salty popcorn along with movie ticket online may result in 12-18% GST
Consuming loose and salted popcorn in a movie theatre can attract GST up to 18 per cent. GST rate on popcorn bought together with movie tickets will be 12 per cent or 18 per cent based on the ticket price if the bundled supply satisfies the test of composite supply.
Based on request from Uttar Pradesh, GST Council clarified that ready-to-eat popcorn, mixed with salt and spices, will attract 5 per cent GST. If it is sold pre packaged and labelled, the GST rate would be 12 per cent and the GST rate for caramel popcorn falls under 18 per cent.
Later, government sources said that generally, popcorn is served to customers in theatres in loose form and hence will continue to attract rate of 5 per cent as applicable to ‘restaurant service’ as long as “supplied independent of the cinema exhibition service.” Application of the last section of the sentence can raise the GST to 12 or 18 per cent for loose and salted popcorn.
Many theatres, especially multiplexes, provide online ticket booking to their patrons. Online ticket purchase accompanies an option buying popcorn, snacks and beverages . Normally the offer comes with discount, making the whole deal attractive. Such a supply, from taxation point of view, could be ‘composite supply’ or even ‘mixed supply’. It may be noted that cinema ticket below Rs.100 attracts GST at 12 per cent and above Rs.100, attracts 18 per cent GST.
