Shift from "Registered brand" to "Pre-packaged and Labelled" on Specified goods
Background: Specified goods on which "registered brand or brand in respect of which an actionable claim or enforceable right in a court of law is available" was one of the most spoken challenges at the inception of GST regime as it was attracting 5% GST especially in case of pulses, cereals like rice, wheat, and flour (aata), etc. Later on this scenario was further evolved vide Notification No.28/2017 Central Tax Rate dt.22.09.2017 wherein if you file an affidavit for foregoing an actionable claim or enforceable right on a brand name, it will not be taxed under GST. This created a mad rush among those manufacturers and traders to opt for it, and to stay away from the tax net. It is learnt that the Group of Ministers (GoM) reviewing the GST rates in this context has decided to remove exemption for packaged food items, if sold under unregistered brands. The GoM’s decision follows Tripura High Court’s judgement wherein the court upheld the tax demand on t...