Non GST ITEM

[Kiran Ray]

Unbranded Rice is in which category is it exempted,Nil rated or NON GST items

Thanks

Kiran ray

[KASTURI SETHI]

Brand name must be registered under Trademark Act to attract higher rate of GST

C.B.E. & C. Press Release No. 68/2017, dated 5-7-2017

 

[Kishan Barai]

My query is that, if the brand name "ABC" is not registered under tradmark act then will it attract 5% GST if rice traded under "ABC" Brand name ??

[KASTURI SETHI]

Dear Sir, Pl. go through this circular your doubt will be clear.

Brand name must be registered under Trademark Act to attract higher rate of GST

C.B.E. & C. Press Release No. 68/2017, dated 5-7-2017

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

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.

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.

Thus, 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% will not be applicable on the supply of such goods.

AI Summary

GST Classification for Unbranded Rice: Exempt, Nil-Rated, or Non-GST? Clarification on Trademark Impact and Rates. A discussion on the Goods and Services Tax (GST) classification for unbranded rice was initiated, questioning whether it is exempt, nil-rated, or non-GST. A participant clarified that a brand name must be registered under the Trademark Act to attract a higher GST rate. Another participant questioned if a non-registered brand name would incur a 5% GST. It was explained that goods like rice, if not in a unit container or lacking a registered brand name, are nil-rated. A registered brand name under the Trade Marks Act attracts a 2.5% CGST rate.