In a Notification Dated 05 July 2017, Ministry of Finance of Government of India explained the meaning of Registered Brand Name in the context of Goods and Service Tax, for charging GST @ 5% registered brands or when put-up in container for certain goods, such as chena or 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
Putting a full stop on the doubts being raised on the meaning of registered trade mark, 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 states that the Registered Brand Name is a Brand Name or a Trade Name which is REGISTERED under Trade Mark Act 1999.
Brands with Symbol “ ® “will be taxed @ 5% under GST
Brands with Symbol “ TM ”will not be taxed under GST
Following sections are referred in this Notification:
- Section 2(w) of the Trade Mark Act 1999:
“Registered Trade Mark” means a trade mark which is actually on the register and remaining in force;
- Section 2(t) of the Trade Mark Act 1999:
“Register” means the Register of Trade Marks referred to in sub-section (1) of section 6;
- Section 6 (1) of the Trade Mark Act 1999:
For the purposes of this Act, a record called the Register of Trade Marks shall be kept at the head office of the Trade Marks Registry, wherein shall be entered all registered trade marks with the names, addresses and description of the proprietors, notifications of assignment and transmissions, the names, addresses and descriptions of registered users, conditions, limitations and such other matter relating to registered trade marks as may be prescribed.
Official Notification of Press Information Bureau, Government of India, Ministry of Finance: