BackGST: CGST won’t apply on items not registered under trademark law
Finance ministry says CGST will not be applicable on the supply of goods unless the brand name is actually on the register of trade arks and is in force under the Trade Marks Act
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New Delhi: The finance ministry on Wednesday said that 5% central goods and services tax (CGST) will not apply on products that are not registered under the Trade Marks Act.
“Unless the brand 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," an official statement said.
It said that CGST rate on supply of certain goods, such as paneer, natural honey, wheat, rice and other cereals, pulses, flour of cereals and pulses is nil. However, supply of such goods, when put up in unit container and bearing a registered brand name would attract CGST.
The clarification comes amid doubts being raised with regard to the meaning of registered brand name for the purpose of GST.
The GST has come into effect from 1 July. It has subsumed several indirect taxes such as excise duty, VAT and sales tax.
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