Placing order for salty popcorn along with movie ticket online may result in 12-18% GST
- Loose Popcorn Sold in Theatres: Generally treated as restaurant services when sold independently, attracting a GST rate of 5%.
- Pre-Packaged Popcorn: If sold pre-packaged and labelled, it attracts a GST rate of 12%. Caramelized popcorn is taxed at 18%.
- Bundled Sales (Movie Ticket + Popcorn):
- If popcorn is bundled with a movie ticket and deemed a composite supply, the GST rate of the principal supply (movie ticket) applies. For tickets:
- Below ₹100: GST is 12%.
- Above ₹100: GST is 18%.
- If popcorn and ticket are treated as a mixed supply, the highest GST rate in the bundle (18% for caramel popcorn) applies to the entire value.
- If popcorn is bundled with a movie ticket and deemed a composite supply, the GST rate of the principal supply (movie ticket) applies. For tickets:
- Composite Supply Definition: According to Section 8 of the CGST Act, 2017, a composite supply involves naturally bundled goods/services in the ordinary course of business, taxed based on the principal supply’s rate.
- Mixed Supply Definition: A mixed supply under Section 8 includes goods/services not naturally bundled, taxed at the highest rate applicable to any item in the bundle.
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