The next time you buy popcorn at the cinema, the price may depend on more than just its size. The GST Council, led by Finance Minister Nirmala Sitharaman, has issued a clarification on the tax rates for popcorn, sparking a nationwide debate about the complexity of India's tax system.

While the rates themselves haven't changed, the council has detailed how they apply. Loose salted or spiced popcorn will continue to attract a 5% GST. However, if you opt for a pre-packaged and labelled bag, the tax jumps to 12%. For those with a sweet tooth, caramelised popcorn falls into the 18% slab, as it is treated like sugar confectionery. Things get even trickier with combo deals, where the popcorn’s tax rate is determined by the movie ticket's GST rate.

The government explained the classification is based on international HS codes for goods. Despite this, the move has been criticised for making GST more complicated, with one former Chief Economic Adviser labelling it a "national tragedy". This highlights ongoing concerns, previously noted by the World Bank, about India’s multiple tax slabs creating compliance challenges for businesses.