Home » FINANCE » CGST 5% Applicable Only for Branded, Trade Mark Products
The Union Minister for Finance, Corporate Affairs and Defence, Arun Jaitley addressing at the ceremony to launch the Goods & Service Tax (GST), in Central Hall of Parliament, in New Delhi on June 30, 2017.(PIB)

CGST 5% Applicable Only for Branded, Trade Mark Products

CGST rate of 5% will not be applicable on the supply of goods unless the brand name or trade name 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, , said Finance Ministry in another clarification of GST taxes.

The Central GST (CGST) rate on supply of certain goods, such as chena 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 NIL. Supply of such goods, when put up in unit container and bearing a registered brand name attracts 2.5% CGST rate, said a statement by the ministry.

Doubts are being raised as to the meaning of registered brand name. In this context, the Notification No. 1/2017-Central Tax (Rate), dated 28th June, 2017 (which notifies the CGST rates of intra-state supply of goods) and Notification No. 2/2017-Central Tax (Rate), dated 28th June, 2017 (which exempts intra-state supply of the specified goods) clearly defines “registered brand name” as brand name or trade name, which is registered under the Trade Marks Act, 1999.

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

Old Stock:

In another clarification, Ministry  for Consumer Affairs, Food & Public Distribution has allowed the manufacturers or packers or importers of pre-packaged commodities to declare the change retail sale price (MRP) on the unsold stock manufactured/ packed/ imported prior to 1st July, 2017 after inclusion of the increased amount of tax due to GST.

This is effective for three months till 30th September, 2017.  Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing, as the case may be, said the ministry.

It is also clarified that ‘for reducing the Maximum Retail Price (MRP), a sticker with the revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer, as the case may be, on the label of the package’.

 

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