This document discusses Goods and Services Tax (GST) in India, specifically how GST rates are linked to trademark status for certain food items. Normally items like milk, grains and cereals are GST exempt, but if packaged and bearing a registered trademark, they are taxed at 5% GST. This provision incentivizes small traders selling untrademarked goods but disincentivizes trademark registration for large companies selling these items. It may increase confusion for consumers and trademark litigation, while undermining trademark protection.

1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
GST ON REGISTERED TRADEMARKS
FILMA VARGHESE
TRADE MARK DEPARTMENT

2. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
WHAT IS GST?
It was introduced as The Constitution (One Hundred and First
Amendment) Act 2017.
The GST is governed by a GST Council and its Chairman is the Finance
Minister of India.
Goods and Services Tax (GST) is an indirect tax applicable throughout
India which replaced multiple taxes levied by the central and state
governments.
A single GST replaced several existing taxes and levies which include:
central excise duty, services tax, additional customs duty, surcharges,
state-level value added tax and local taxes such as Octroi.
Other levies which were applicable on inter-state transportation of
goods have also been done away with in GST regime.

3. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONTINUED….
GST is levied on all transactions such as sale, transfer,
purchase, barter, lease, or import of goods and/or services.
India adopted a dual GST model, meaning that taxation is
administered by both the Union and State Governments.
Transactions made within a single state will be levied with
Central GST (CGST) by the Central Government and
State GST (SGST) by the government of that state.
For inter-state transactions and imported goods or
services, an Integrated GST (IGST) is levied by the Central
Government.

4. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONTINUED….
GST is a consumption-based tax, therefore, taxes are paid to
the state where the goods or services are consumed not the
state in which they were produced.
Under GST, goods and services are taxed at the following rates,
0%, 5%, 12% and 18%.
There is a special rate of 0.25% on rough precious and semi-
precious stones and 3% on gold. In addition a cess of 15% or
other rates on top of 28% GST applies on few items like
aerated drinks, luxury cars and tobacco products.
The GST is imposed at different rates on different items. The
rate of GST is 18% for soaps and 28% on washing detergents.

5. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONTINUED….
GST on movie tickets is based on slabs, with 18% GST for
tickets that cost less than Rs. 100 and 28% GST on tickets
costing more than Rs.100.
The rate on under-construction property booking is 12%.
The implementation of GST has impacted almost every
sector, including intellectual properties. The tax rates on
some items are linked to their trademark status.

6. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Goods exempt under the Goods and
Services Tax (GST)
Goods such as chenna, paneer, natural honey, wheat, rice, pulses and cereal flours are not
taxed under GST.
Items for which GST rate is linked to trademark status
The GST rate schedule provides a list of items on which tax under GST will not be
applicable. However, the items (mostly food items) in this list will attract 5% GST if such
items are put in unit container and bears a registered brand name.
Under chapter 4 - Dairy produce; bird’s eggs; natural honey; edible products of animal
origin, not elsewhere specified
Under chapter 10 (Cereals) - All goods, wheat and meslin, rye, barley, oats, Maize (corn),
rice, grain sorghum, buckwheat, millet and canary seed; other cereals such as Jawar, Bajra
and Ragi
Under chapter 11 (Products of milling industry; malt; starches; inulin; wheat gluten):
Cereal groats, meal and pellets; aata, maida, besan, flour of wheat or meslin flour, cereal
flours other than of wheat or meslin i.e. maize (corn) flour, rye flour etc.

7. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONTINUED….
“Registered brand name” - Brand name or trade name, which is
registered under the Trade Marks Act, 1999.
In this regard, Section 2 (w) read with section 2 (t) of the Trade
Marks Act, 1999 provide that a registered trade mark means a trade
mark which is actually on the Register of Trade Marks and
remaining in force.

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONSEQUENSES
The items to which this provision applies are basic food items, towards
which consumers are highly price sensitive.
The choice for companies, large, medium and small, is to either maintain
a registered trademark and have the consumers incur 5% addition cost,
or sell under unregistered trademarks.
Companies are likely to refrain from applying for trademark registration
covering such items, and if they have already registered, then they may
apply for cancellation of registration.
We can anticipate increased instances of smaller players introducing
such items into the market, bearing trademarks (of course unregistered)
that are identical or deceptively similar to large reputed companies.

9. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONSEQUENSES
Such activities will dilute the goodwill, and may also negatively impact
the reputation of established companies.
Such established companies will find it difficult and expensive to stop
such players from riding on their goodwill, since enforcing an
unregistered trademark is far more complicated compared to enforcing a
registered trademark.
High possibility of consumers being deceived into buying such items
thinking that it originates from a reputed source.
Such confusion is highly undesirable especially in connection with food
items, which are brought on a regular basis, and consumed largely on a
daily basis.
We can see an increase in trademark litigation in this space.

10. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
The Government appears to have introduced the provision of nil
GST on some items that are sold under unregistered trademarks to
incentivize small traders. However, established companies are
positioned to nullify the incentive, and most likely will, by either
refraining from applying for trademark registration or cancelling
registration. Additionally, the Government’s move may negatively
impact the culture of intellectual property protection, which the
Government is rigorously trying to foster.
Going forward, we anticipate that trademark applications covering
such item will be few and far in between. Also, there will be requests
for amendments or cancellation of registered trademarks covering
such items.
CONCLUSION

11. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
THANK YOU