Brand Name in GST

Rajasthan Circular Submission of Affidavit to Forgo Actionable Claim or Enforceable Right in respect of a Brand Name

[Ref: GST Circular No. 02/2017 No. F. 17(134)ACCT/ GST/ 2017/2627 Dated 29th September, 2017]

Sub.:- Submission of affidavit to forgo actionable claim or enforceable right in respect of a brand name.

Rate of tax on goods under GST have been notified vide notification no. F.12(56)FD/Tax/2017-Pt.-I-40 dated 29 June, 2017, as amended from time to time. Besides, exemption from tax on intra-State supplies of goods have been notified vide notification no. F.12(56)FD/Tax/2017-Pt.-I-41 dated 29 June, 2017, as amended from time to time. Some of the goods were made taxable or put into higher tax slab, if such goods are put up in unit containers and bear a registered brand name.

However, according to amendments to the aforesaid notifications as notified on 22nd September, 2017, the rate of tax on certain items put up in unit container and bearing a registered brand name has been amended. It is provided that such goods, put up in unit container and,-(a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available, shall be exempted. Where any actionable claim or any enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as mentioned in the ANNEXURE I, shall be taxable at the rate of 5%.

In the ANNEXURE I, as appended to the notification, it has been provided that for foregoing an actionable claim or enforceable right on a brand name, the person undertaking packing of such goods in unit containers which bear a brand name shall file an affidavit to that effect before the jurisdictional Joint Commissioner of State tax that he is voluntarily foregoing his actionable claim or enforceable right on such brand name as defined in Explanation (ii)(a).

Various communications have been received from the officers and taxpayers on the issue of submission of affidavit to forgo actionable claim or enforceable right for brand name.

Therefore, in exercise of powers conferred under section 168 of the Rajasthan Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, following directions are issued:

i. All the jurisdictional Joint Commissioners of State Tax having jurisdiction over the principal place of business of the taxpayer shall accept the affidavit to be submitted in this regard. It should be ensured that such taxpayers are complying with conditions prescribed in notification no. F.12(56)FD/Tax/2017-Pt.-II-93 dated 22 September, 2017 and F.12(56)FD/Tax/2017-Pt.-II-94 dated 22 September, 2017 issued by the State Government.

ii. Details of brand name and related commodity and any pending application to register the brand shall be submitted by the taxpayer in the affidavit. The taxpayer may submit details of all such goods and brands, he deals with, in a affidavit.

iii. Proper record of all such affidavits shall be maintained at the office level. Format of bounded register to be maintained in this regard and acknowledgement to be issued is enclosed to maintain uniformity.

iv. Joint Commissioner (Adm.) shall communicate the details of such affidavits to the jurisdictional proper officer for ensuring compliance of the aforesaid notifications.

All Joint Commissioner (Adm.) shall ensure compliance of these directions and make aware the business community in this regard.