India

Businesses deregistering brands for availing GST must file affidavit: Govt

September 21, 2017:    Government says, businesses that want to deregister their brands for availing the benefit of lower GST will have to file an affidavit before the tax commissioner about forgoing the rights.
A finance ministry statement said, the businesses will also have to print in indelible ink on containers in which they are selling cereals, pulses, flours that they have voluntarily foregone actionable claim or enforceable right on brands.

Under the Goods and Services Tax regime rolled out from July 1, unpacked food grains like cereals and pulses are exempt. However, packed foodgrains put up in unit container bearing a brand name attracts 5 per cent levy.
Since the GST introduction, it had come to the notice of the tax department that many businesses have been registering their brands to avail the benefit of lower GST.

Following that, the GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, earlier this month decided that a brand registered as on May 15, 2017, shall be deemed to be a registered brand for the purposes of levy of 5 per cent GST, irrespective of whether or not such brand is subsequently deregistered.

Also any brand registered as on May 15, 2017, under the Copyright Act, 1957 shall also be treated as a registered brand for the purposes of levy of 5 per cent GST.      (AIR NEWS)

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