TaxTMI 
TaxTMI 
Assignment of trade mark is a supply of goods or service under GST
Classication of Goods or Service
02 Jun 2023 
9 Replies 
2863 Views Asked by
Classification of trademark assignment as goods or service affects GST treatment; contractual terms and statutory entries determine tax character.
Classification of a trade mark assignment under GST hinges on whether the transaction effects a permanent transfer of title (suggesting supply of goods) or constitutes a licence/permission (temporary or permanent) to use the IP right (suggesting supply of services). Service-rate entries cover temporary and permanent transfers or permitting use of IP rights; Schedule provisions treat temporary transfers as services. Contractual terms and the factual nature of the transfer are determinative in resolving the goods-versus-services character. (AI Summary)
Classification of a trade mark assignment under GST hinges on whether the transaction effects a permanent transfer of title (suggesting supply of goods) or constitutes a licence/permission (temporary or permanent) to use the IP right (suggesting supply of services). Service-rate entries cover temporary and permanent transfers or permitting use of IP rights; Schedule provisions treat temporary transfers as services. Contractual terms and the factual nature of the transfer are determinative in resolving the goods-versus-services character. (AI Summary)