GST applicability on Brand

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... GST applicability on Brand
Query (Issue) Started By: - Bayyareddy DK Dated:- 29-1-2022 Last Reply Date:- 4-2-2022 Goods and Services Tax - GST
Got 4 Replies
GST
Sir, My client is owning registered brand in his individual name and he is not registered under GST Act. He has been using this brand for his partnership business (importer of goods) as partner and as well his retail business .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in a Pvt ltd company as he is also a director. All imported goods are sold to his Pvt ltd company only. Individual is not charging any fee for branding. Firm and Pvt ltd are registered under GST Act. Is the GST applicable on this transaction for lending brand to his firm and pvt ltd company and vice versa? please advice Reply By KASTURI SETHI: The Reply: Sh.Bayyareddy DK Ji, Your client's .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... transaction is covered under Schedule-1 of CGST Act. Relevant clause is extracted below : SCHEDULE-1 (See Section-7) ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION 2. Supply of goods or services or both between related persons or between distinct persons as specified in Section 25, when made in the course or furtherance of business : Reply By KASTURI SETHI: The Repl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y: Branding the goods is a service.It establishes a link between manufacturer and product.To allow the use of brand name for goods to another person is supply of service. Reply By Shilpi Jain: The Reply: Agree with Kasturi sir. Please see what could you value this as? Not sure if there would be a market value readily available. See if you can choose the 2nd proviso to rule 28 by which, in cas .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e the full credit is available to the recipient, any value can be charged. Reply By Ganeshan Kalyani: The Reply: I agree with the views of Sri Kasturi SIr. Transaction between related person is subject to GST.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X