FinMin clarifies definition of ‘branded’ items for GST

FinMin clarifies definition of ‘branded’ items for GST


Defining ‘Branded Item’ for GST

Context

  •  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

Current Issue

  •  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.
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