New Delhi, September 23, 2017

Manufacturers will have to state on packages that they have foregone brand rights to avail of relief

Packaged food products will not attract Goods and Services Tax (GST) at five per cent if the manufacturer declares to voluntarily forego any actionable claim or enforceable right on the brand name, the government has notified.

Following the decision of the GST Council earlier this month, "these notifications also provide that this 5 per cent GST will, however, not apply if the person concerned voluntarily foregoes any actionable claim or enforceable right on such brand name," a Finance Ministry release said here on Friday.
"These notifications, interalia, provide that 5 per cent GST will apply if on brand name (as defined in the notification) an actionable claim or enforceable right in court of law is available," it said.

How to avail of this relaxation

The entity concerned will have to file an affidavit to the effect that it is voluntarily foregoing actionable claim or enforceable right on such brand name with the jurisdictional Commissioner of Central Tax or State Tax, or the jurisdictional officer of Union Territory Tax, it added.
The ministry's circular also directs brand owners to print in indelible ink, both in English and the local language, on each unit container that in respect of the brand name printed on it, he has voluntarily forgone the actionable claim or enforceable right.

[The Business Standard]