{"id":31229,"date":"2020-04-23T17:57:26","date_gmt":"2020-04-23T12:27:26","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=31229"},"modified":"2023-07-12T15:03:06","modified_gmt":"2023-07-12T09:33:06","slug":"applicability-of-gst-on-brand-names","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/applicability-of-gst-on-brand-names\/","title":{"rendered":"Applicability of GST on Brand Names: A Complete Report"},"content":{"rendered":"

In the current scenario, the goodwill attached to the brands is an essential guiding factor for the consumers to decide on the purchase of the brand products. A brand is protected by one of the most important intellectual property<\/a> rights (IPR), which is known as ‘trademark.’ Intellectual Property rights, though being in an intangible form, significantly increase the value of goods and also provide various rights and also the remedies for protecting its position in the market<\/a> full of competition. If a person gets his brand name registered, he gets exclusive rights to use such brand name and file a suit for infringement<\/strong> of his registered trademark or brand name. This article describes the Applicability of GST on Brand Names.<\/p>\n\n\n\n

Even the unregistered brand names have got certain equitable rights which can be enforced in a court like that of remedy against passing off. It also prevents misrepresentation of his goods or services. Gradually, a brand name is getting due importance in the GST regime<\/strong> as well. The GST regime has brought confusion regarding the difference in the rates of tax levied on the supply of branded and unbranded goods and services. It is also observed that there is no difference between branded and unbranded services, even though a brand name can be registered as a trademark.<\/p>\n\n\n\n

What are the Legal Provisions of GST on Brand Names?<\/h2>\n\n\n\n

The provisions related to GST on brand names have been enumerated in Notification No-01\/2017-Central Tax (Rate) dated 28<\/strong>th<\/strong><\/sup> June 2017<\/strong>. Some of its elements are explained below:<\/p>\n\n\n\n
\n Entry\n Number\n  \n <\/td>\n HSN\n <\/td>\n Description\n of the goods\n <\/td>\n Applicable\n Tax Rate\n <\/td><\/tr>
\n 11\n  \n <\/td>\n 0406\n <\/td>\n Chena\n or paneer packed in a unit container and bearing a registered brand name\n <\/td>\n 5%\n <\/td><\/tr>
\n 13\n  \n <\/td>\n 0409\n <\/td>\n Natural\n honey, packed in a unit container and bearing a registered brand name\n <\/td>\n 5%\n <\/td><\/tr>
\n 25\n  \n <\/td>\n 0713\n <\/td>\n Dried\n leguminous plant vegetables, shelled, whether or not skinned or split that is\n packed in a unit container, and it also consists of a brand name.\n <\/td>\n 5%\n <\/td><\/tr><\/tbody><\/table>
\n\n\n\n

<\/p>

Contrarily,\nNotification No. 02\/2017- Central Tax (Rate) dated 28th June 2017, states that if the products mentioned above are not packed in a unit container nor does not\nhave a registered brand name, these products will be exempted from tax. The\nexempted goods have been shown below:<\/em><\/div>\n\n\n\n
\n Entry\n Number\n <\/td>\n HSN\n <\/td>\n Description\n of the goods\n  \n <\/td>\n Applicable\n Tax Rate\n <\/td><\/tr>
\n 27\n <\/td>\n 0406\n <\/td>\n Chena\n or paneer, not packed in a unit container and also not having bearing a\n registered brand name\n <\/td>\n Exempted\n <\/td><\/tr>
\n 29\n <\/td>\n 0409\n <\/td>\n Natural\n honey not packed in a unit container without a registered brand name\n <\/td>\n Exempted\n <\/td><\/tr>
\n 25\n <\/td>\n 0713\n <\/td>\n Dried leguminous plant vegetables, shelled, whether or not\n skinned or split not packed in a unit container and not having a brand name<\/strong>\n <\/td>\n Exempted\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Explanation:<\/strong><\/p>\n\n\n\n

Unit Container: The phrase “unit container”\nhere means a package, either a large or small (for example, can, tin, box,\nbottle, jar, bag, or carton, barrel, drum, or canister that was designed to\nhold a fixed quantity or number, which is indicated on such package.<\/p>\n\n\n\n

What is meant by\nRegistered Brand Name?<\/h2>\n\n\n\n

According to the phrase, ‘registered brand name means a brand name or trade name, which can be a name or a mark such as a monogram, symbol, label, signature or any invented word or writing which is used with respect to such specified goods to indicate or to determine a connection during the course of trade between the specified goods and some individuals using the mark or name with or without indication of the identity of that individual, and which has been registered under the Trade Marks Act, 1999<\/strong><\/span>1<\/sup><\/a><\/span>. The brand name also means:<\/p>\n\n\n\n