Govt explains ‘registered brand name’ in context of CGST

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New Delhi: There is no Central Goods and Services Tax (CGST) rate on the supply of certain goods such as chhena 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 — the Union government has clarified.

The government has issued the statement above, adding that the supply of any such commodity, when put up in a unit container bearing a registered brand name, would attract a 2.5% CGST rate.

Some businessmen and consumers alike had raised doubts over the meaning of a “registered brand name”. The government has, through the notifications 1/2017-Central Tax (Rate) dated 28 June and 2/2017-Central Tax (Rate) dated 28 June of this year, clearly defined “registered brand name” as brand name or trade name, which is registered under the Trade Marks Act, 1999. The first notification describes the CGST rates of intra-state supply of goods. The second exempts intra-State supply of the specified goods.

In this regard, Section 2 (w) read with section 2 (t) of the Trade Marks Act, 1999, state that a registered trade mark means a trade mark that is actually on the Register of Trade Marks and remaining in force.

Thus, the government says, 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, the CGST rate of 5% will not be applicable to the supply of such goods.

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