Procurement of Trade Mark

Yes, you can claim Input Tax Credit (ITC) on the GST paid for trademark registration, provided you are a GST-registered business and the expenditure is incurred in the course or furtherance of your business.

Key Requirements for Claiming ITC:

• GST Registration: You must be a registered taxable person under the GST regime.

• Business Purpose: The trademark registration must be for business purposes.

• Valid Invoice: You must possess a valid tax invoice from the service provider (e.g., your trademark attorney or IP firm) that clearly mentions your GSTIN.

• Compliance: The invoice must be reflected in your GSTR-2B, which happens once your supplier files their GSTR-1.

• Payment: The supplier must have actually paid the tax to the government, and you must have filed your relevant GST returns (GSTR-3B).

Important Considerations:

• Professional Fees: You can generally claim full ITC on the 18% GST charged by professional firms or attorneys for trademark filing, search, and prosecution services.

• Government Fees: Please note that government filing fees paid directly to the Trademark Registry may not always carry GST or may be handled differently; you can only claim ITC on the 18% GST component if it is explicitly charged on a valid tax invoice.

• Reverse Charge Mechanism (RCM): If you hire an individual advocate for legal services, the tax liability may fall on you under RCM. You must pay the 18% GST directly to the government, and you can subsequently claim that amount as ITC.

• Deadlines: ITC must be claimed within the statutory time limit, which is the earlier of:

  • The 30th of November following the end of the financial year to which the invoice pertains.

  • The date of filing the annual return for that financial year.

Summary: You are eligible to claim ITC on the 18% GST paid for trademark registration services as long as you are a GST-registered business, hold a valid tax invoice, and ensure the transaction is correctly reflected in your GSTR-2B.