Definition of ‘Branded’ items for GST
- The Ministry of Finance clarified that an item will be deemed to be ‘branded’ if it carries a brand name or trade name that is registered under the Trade Marks Act, 1999.
- 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 GST rate on the supply of food items, such as natural honey, wheat, rice, pulses and flour of cereals and pulses, is nil.
- But the rate on these items when placed in a unit container and bearing a registered brand name will attract a GST rate of 5%.
- A trademark is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others.
- Trademark registration can be obtained for a business name, distinctive catch phrases, taglines or captions.
- For a trademark registration to remain valid, it has to be renewed every 10 years for registration granted PRIOR to September 15, 2003.
- Registrations granted on or after September 15, 2003 have a 10-year term. Trademarks can be renewed for an additional 10-year term.
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