GST impact: Govt defines ‘registered brand name’

The Central Goods and Services Tax (CGST) rate of 5% will not be applicable to the supply of goods unless the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, said a government release on Wednesday.

Jul 05, 2017 12:07 IST India Infoline News Service

The Central Goods and Services Tax (CGST) rate of 5% will not be applicable to the supply of goods unless the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, said a government release on Wednesday.

The Central GST (CGST) rate on the supply of certain goods, such as chena or paneer, natural honey, wheat, rice and other cereals, pulses, flour of cereals and pulses, other than those put up in a unit container and bearing a registered brand name, is NIL. Supply of such goods, when put up in a unit container and bearing a registered brand name attracts 2.5% CGST rate. 
 
Doubts were being raised as to the meaning of a registered brand name. In this context, the Notification clearly defines 'registered brand name' as brand name or trade name, which is registered under the Trade Marks Act, 1999.
 
Thus, unless the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, CGST rate of 5% will not be applicable on the supply of such goods. 

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