Defining ‘Branded Item’ for GST
- With regard to GST, the term “brand name” has brought in some confusion as both analysts and traders found the definition and meaning of “brand name” ambiguous in nature
- The Ministry of Finance clarified that for the purposes of Goods and Services Tax (GST) applicability, an item will be deemed to be ‘branded’ if it carries a brand name or trade name that is registered under the Trade Marks Act, 1999
- 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
What is the Need?
- There was confusion around the definition of a branded product, since several unbranded food items are exempt from GST while their branded variants fall in the 5% tax bracket.
- Doubts are being raised as to the meaning of registered brand name.