Exempt/Nil rated

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This discussion clarifies whether selling exempted goods, such as agricultural produce procured from farmers, under a brand name is subject to GST. The consensus is that unless the cooperative society itself brands the product with its own name, it's generally not considered branded for GST purposes. However, specific exemptions, like for salt regardless of branding, can override general rules if stated in the GST Tariff.

Nimitha Kundanam

Nimitha Kundanam (Querist)
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25 November 2020 Dear sir,

Where exempted goods(agricultural produces) are procured by society from farmers and sold outside to help the farmers, whether this will be considered as branding as per GST and chargeable to GST?

Please clarify.

Lekhraj sood

Lekhraj sood (Expert)
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27 November 2020 Meaning of brand name under GST- "brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person, and which is registered under the Trade Marks Act, 1999."
So unless the sold packages contain the brand name of the cooperative society it can not be called branded product.

Nimitha Kundanam

Nimitha Kundanam (Querist)
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28 November 2020 Thank you for the reply sir. So, if exempted goods are sold with a brand name say for eg: TATA SALT whether it is taxable?

Waiting for your reply

Lekhraj sood

Lekhraj sood (Expert)
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28 November 2020 It is not a general rule,it will apply if mentioned so in the GST Tariff. All salt is exempted irrespective of branding.

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