GST applicability on Brand

[Bayyareddy DK]

Sir,

My client is owning registered brand in his individual name and he is not registered under GST Act. He has been using this brand for his partnership business (importer of goods) as partner and as well his retail business in a Pvt ltd company as he is also a director. All imported goods are sold to his Pvt ltd company only. Individual is not charging any fee for branding. Firm and Pvt ltd are registered under GST Act. Is the GST applicable on this transaction for lending brand to his firm and pvt ltd company and vice versa? please advice

AI Summary

GST Applies to Brand Lending Between Related Entities Under Schedule-1 of CGST Act, Even Without Consideration. A client owns a registered brand under their individual name but is not registered under the GST Act. The brand is used for both a partnership business and a private limited company, both of which are registered under GST. The client does not charge a fee for branding. The forum discusses whether GST applies to the transaction of lending the brand. Respondents agree that this transaction is covered under Schedule-1 of the CGST Act, which treats activities between related persons as supplies subject to GST, even without consideration. They suggest considering the value of the service provided for GST purposes.