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

Supply between related persons treated as taxable service when brand use is permitted without consideration.
Permitting use of a registered brand to related business entities without charging consideration is a supply under Schedule 1 and constitutes a taxable service. Branding that links product and proprietor supplied to related or distinct persons in course or furtherance of business is treated as supply even if made without consideration. Taxable value should reflect market value unless an alternative valuation applies, for example the proviso allowing an agreed value where the recipient avails full input tax credit.