5% CGST Not Applicable On Unregistered Products Under Trade Marks Act:- The 5% CGST will not apply on products that are not registered under the Trade Marks Act, said the Finance Ministry on Wednesday.

An official statement said, “Unless the brand or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, CGST (Central Goods and Services tax) rate of 5% will not be applicable on the supply of such goods.”

The CGST rate on supply of certain goods, such as paneer, natural honey, wheat, rice and other cereals, pulses, flour of cereals and pulses is nil, said the statement. However, the supply of such goods, when put up in unit container and bearing a registered brand name would attract CGST.

Amid doubts being raised with regard to the meaning of registered brand name for the purpose of GST, the clarification arises. From July 1, the GST has come into effect. Several indirect taxes such as excise duty, VAT and sales tax, have been subsumed by the GST.

SUPRAJA