Ruling on GST Rates for Registered and Unregistered Brands in Rice Manufacturing

The case involved a rice manufacturer seeking clarification on selling rice under registered and unregistered brands with different GST rates and exemptions. The ruling determined that selling under a registered brand attracted 5% GST, while selling under an unregistered brand required relinquishing the actionable claim to qualify for exemption. Holding a registered brand while selling under an unregistered brand was permissible if exemption conditions were met, including voluntary forfeiture of the actionable claim, filing affidavits, and printing disclaimers on containers. Compliance with these conditions was crucial to claim GST exemption for manufacturers selling under a deregistered brand.

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Issues:
Classification of goods and services for a rice manufacturer under registered and unregistered brands with different GST rates and exemptions.

Analysis:
1. The applicant, a rice manufacturer, sought an advance ruling on selling rice under registered and unregistered brands with varying GST rates and exemptions. The applicant sold rice under the registered brand 'KITCHEN KING' and unregistered brand 'SBRM's K KING' with different tax treatments.

2. The amendments in Notification No. 27/2017 and Notification No. 28/2017 altered the tax liability based on the brand name. Goods under a registered brand attracted 5% GST, while those under an unregistered brand were exempt, provided the actionable claim on the brand was voluntarily foregone and disclaimers were printed on containers.

3. The applicant questioned the necessity of deregistering the brand for selling under an unregistered brand with nil GST. The ruling clarified that selling under a registered brand made the applicant ineligible for exemption. However, possessing the registered brand while selling under an unregistered brand was permissible if exemption conditions were met.

4. Regarding the third query, de-registering the brand name and selling under an unregistered brand required the voluntary forfeiture of the actionable claim, filing an affidavit with tax authorities, and printing disclaimers on containers to claim exemption from GST.

5. The ruling established that manufacturers selling rice under a registered brand were subject to 5% GST, while those selling under an unregistered brand after relinquishing the actionable claim were exempt from GST. Holding a registered brand while selling under an unregistered brand was allowed, but selling under the registered brand would nullify the exemption.

6. Manufacturers selling under a deregistered brand could claim GST exemption by voluntarily waiving their actionable claim, filing affidavits, and printing disclaimers on unit containers. Compliance with these conditions was essential to qualify for the exemption.

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