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Franchise registration under gst

Deepak Devassy (CA Final and Sr. Accounts Executive in CareKeralam Ltd) (39 Points)

01 December 2017

HI,

I am a running a furniture shop under the brand name of DD which is registerd under gst and also the Brand name is registered. now i am planning to give a franchise to other person.

My doubt is when we give a franchise to other person , whether the franchisee is laible to take separate registration and whose liability is to collect and pay tax under gst.

what is the procedure when we give franchise to other person

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2 Replies

sudip sharma (article) (734 Points)
Replied 01 December 2017

under service tax it is specifically mentioned that if you are carrying business under anyone brand name you need to take compulsory registration. however detailed reading of GST act , definition of agent include franchise . so franchise need to take compulsory registration under sec 24 and follow the registration process as mentioned in sec 25 and rules of registration. plz contact a CA for details therein.

varsha (marketing) (30 Points)
Replied 27 May 2022

In the Franchise Registration States, franchisors must register their Franchise Disclosure Document (FDD) with a local state regulator before offering or selling a franchise within that state, in addition to the Federal Franchise Laws. These states have issued supplemental franchise laws in addition to the Federal Franchise Laws.