GST on Branded and Non branded Manufacturing

[NAMAN DOKANIA]

A manufacturer ABC PVT LTD manufactures maida and dal and packages them 2 forms:

1. In small packet container with price weight and everything under his brand name registered with Trademark Authorities namely 'Foodie'.

2. In big packets in which only his company name is written. no name of the trademark is written. just the company name i.e. Manufactured by ABC PVT LTD is written.

Is GST leivable in both the cases? Please specify the reason also in both case.

[Alkesh Jani]

Shri

The defination of brand name is give at Explanation 3 of Notification No.1/2017 dated 28.06.2017 and is reproduced below :-

"(3) For the purposes of this notification, the phrase “brand name” means brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person."

Hope this will help to clear your ambiguity.

[KASTURI SETHI]

The definition of 'Brand Name' posted by Sh Alkesh Jani Ji makes it clear that both the goods mentioned at serial no.1 & 2 are taxable.

Extract of FAQ released by Board

Question 8 : Is Atta/Maida/Besan supplied in bulk liable to tax under GST?

Answer : Outward supply of these goods if effected without registered brand name is exempt under GST. However, if the outward supply is made under a registered brand name and put up in unit container then it would be liable to tax @ 5%.

[Ganeshan Kalyani]

I agree with the views of the experts. If the goods is unbranded then it is exempt from GST and if branded then taxable under GST.

[NAMAN DOKANIA]

Sir, Will the answer would be different due to the earlier judgement of AAAR incase of Aditya Birla Retail Limited. = 2018 (8) TMI 1072 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA where it was held that simply removing the brand name would suffice the purpose when the company name is same.

See: Article 

[Alkesh Jani]

Shri

The ruling given by advance ruling authority is applicable only to the applicant and jurisdictional officer. If you apply and get the ruling in your favour it would be acceptable. You have the grounds and can opt for it, but till then the reply given by our Experts is best in the given facts and circumstances.

[KASTURI SETHI]

I agree with the views of Sh.Alkesh Jani Ji.

[YAGAY andSUN]

We endorse the views of Mr. Alkesh.

AI Summary

Brand name classification: goods in unit packaging under a brand are taxable, while unbranded bulk supplies are exempt. Whether GST applies depends on whether goods are supplied under a brand name, defined to include a company name or mark indicating commercial connection. Bulk supplies without a registered brand name are treated as exempt, while goods put up in unit containers and supplied under a brand name are taxable. An advance ruling favourable to one applicant binds only that applicant and the jurisdictional officer; manufacturers may seek such rulings but cannot rely on them as general precedent.