CGST won't apply on items not registered under trademark law

The Union Finance Ministry on 5 July 2017 stated that the Central Goods and Services Tax (CGST) rate of 5 per cent will not be applicable on the supply of goods unless the brand name or trade name is actually on the Register of Trade Marks and is registered under the Trade Marks Act, 1999.

Certain goods such as chena or paneer, natural honey, wheat, rice and other cereals, pulses, flour of cereals, pulses and other goods except those put up in unit container and bearing a registered brand name, attract no CSGT.

However, supply of such goods, when put up in unit container and bearing a registered brand name, attracts 2.5 per cent CGST rate.

The Registered Brand Name is defined as the brand name or trade name, which is registered under the Trade Marks Act, 1999. In this regard, Section 2 (w) 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.

Accordingly, 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 per cent will not be applicable on the supply of such goods.

Background
The Goods and Services Tax (GST) was launched in India at the stroke of midnight on 1 July 2017, nearly after 17 years of its conception.

GST is expected to completely transform the Indirect Taxation landscape in the country involving both the Central and State levies as GST will be administered together by the Centre and States.