Centre clarifies CGST not applicable on unregistered goods

The Centre on Wednesday clarified that in the context of the new Goods and Services Tax (GST), the five percent tax slab will be levied only on the supply of those goods whose brand name or trade name is on the Register of Trade Marks and is in force under the Trade Marks Act, 1999.

The Central GST (CGST) rate on the supply of 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 the unit container and bearing a registered brand name, is nil. Supply of such goods, when put up in the unit container and bearing a registered brand name, attracts 2.5 percent CGST.

Clarifying the implications of a registered brand name, the Centre drew upon Section 2 (w), read with Section 2 (t) of the Trade Marks Act, 1999, which provides that a registered trade mark means a trade mark which is actually on the Register of Trade Marks and remaining in force.

Therefore, unless the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, CGST rate of five percent will not be applicable on the supply of such goods.