What Is the Popcorn Tax in India?
What Is the Popcorn Tax in India?
Understanding GST on Popcorn at Multiplexes and Stores
Have you ever bought a bucket of popcorn at a movie theatre and wondered, “Why is it so expensive?”
Well, part of that cost includes what many people now call the “Popcorn Tax.”
In this blog, we’ll explain what the term means, the actual tax rate on popcorn, and why it matters for both consumers and businesses.
🍿 What Is Popcorn Tax?
The term “Popcorn Tax” is a colloquial phrase, not an official tax. It refers to the Goods and Services Tax (GST) charged on popcorn, especially at multiplexes, malls, and food courts.
Because popcorn is often sold as part of the movie-going experience, many consumers are surprised by the high price, partly due to the 18% GST applied in certain cases.
So essentially, Popcorn Tax = GST on popcorn charged at cinema halls or commercial food counters.
📦 GST Rate on Popcorn – A Quick Breakdown
| Type of Popcorn | GST Rate |
| Packaged & Branded (Retail) | 12% GST |
| Served Fresh at Cinemas | 18% GST |
| Unbranded, Loose, Not for Immediate Consumption | 5% or Exempt |
🔍 Why 18% at cinemas?
Because popcorn at a movie theatre is considered a restaurant service, and under GST rules, food and beverages served for immediate consumption attract 18% tax.
🎥 Why Is It Called "Popcorn Tax"?
• The term became popular because movie snacks like popcorn, nachos, and colas are priced significantly higher in cinemas.
• Consumers began attributing this to "hidden taxes," even though it's GST, which is transparently added to your bill.
• In social media and financial literacy content, it is used to create awareness about the tax on luxury consumption.
🧾 Sample Popcorn Bill at a Cinema
| Particulars | Amount (₹) |
| Base price of popcorn | ₹212 |
| GST @ 18% | ₹38.16 |
| Total Payable | ₹250.16 |
This tax is shared between CGST and SGST (9% each) when sold within a state.
⚖️ Legal Rulings & Clarifications
The Authority for Advance Rulings (AAR) in various states like Maharashtra and Telangana has ruled that:
• Popcorn made and sold fresh at food courts or multiplexes falls under restaurant services
• Therefore, 18% GST is applicable
On the other hand, pre-packaged popcorn sold in stores under a registered brand typically attracts 12% GST.
💡 Consumer Tip
• If you’re buying popcorn at a grocery store, it will usually attract 12% GST
• If you're enjoying it at a multiplex, be ready to pay 18% GST
• Always ask for a tax invoice to see how much GST you’re paying
Final Words
The “Popcorn Tax” isn’t separate, but a reflection of how GST is applied on food items based on where and how they are sold. It highlights how luxury experiences, like eating at a multiplex, can attract higher taxes compared to regular retail purchases.
Confused by GST rates on food items like popcorn?
Let our tax experts help you classify products correctly and stay GST-compliant.
👉 https://callmyca.com/gst-registration
