Why does caramel popcorn attract a different GST rate from salted popcorn? Explained

Popcorn GST: The goods and services tax Council Meeting, headed by Finance Minister Nirmala Sitharaman, agreed to issue a clarification on the taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will attract a 12 per cent tax while an 18 per cent GST rate will be levied if it is caramelised. The tax rate on popcorn has not changed, and the GST Council agreed that the Central Board of Indirect Taxes and Customs would issue a circular clarifying the current taxation rate regime on popcorn varieties. "Ready-to-eat popcorn", which is mixed with salt and spices and has the essential character of namkeens, currently attracts a five per cent GST if it is not pre-packaged and labelled. Caramelised popcorn comes with added sugar, so the treatment of rate is different from namkeen.” GST Council Meeting Decisions Today The GST Council, in its 55th meeting conducted in Jaisalmer, Rajasthan, on Saturday, deferred the much-awaited decisions on reducing the tax rate on life and health insurance premiums and levying tax on food delivery by app-based platforms such as Swiggy, Zepto, and Zomato.