Clearing doubts on ‘brand name’ and application of Central GST (CGST) on certain goods, the government on Monday said that there is no levy of CGST on supply of 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. However, the supply of such goods, when put up in a unit container and bearing a registered brand name attracts 2.5 per cent CGST rate.
The clarification comes amid ambiguity over the definition of the 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,” Ministry of Finance said in a statement.
“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” the statement further said.