New Delhi, July 5, 2017

With concerns over what constitutes a registered brand name, the Finance Ministry has clarified that these would be only those brands that are under the Trade Marks Act, 1999.

The question had arisen as packaged food items under a registered brand name would attract five per cent goods and services tax, while others would be exempt.

“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, Central GST rate of five per cent will not be applicable on the supply of such goods,” said the Finance Ministry on Wednesday.

Under the new law, CGST on supply of certain goods, such as chana or paneer, natural honey, wheat, rice and other cereals, pulses, flour of cereals and pulses, other than those put-up in unit container and bearing a registered brand name, is exempt.

Supply of such goods, when put up in unit container and bearing a registered brand name attracts 2.5 per cent CGST rate.

[The Hindu Business Line]