GST Exemption and Brand Names: Maharashtra Advance Ruling GST-ARA-13/2017/B-16
Displaying a company name or brand identity on product packaging disqualifies goods from GST exemptions, even if registered trademarks are removed.
- Ruling
- NO.GST-ARA-13/2017/B-16 Mumbai, dt. 23/3/2018
- Dated
- 23 Mar 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Aditya Birla Retail asked if removing trademarks qualifies products for GST exemptions.
- The Authority ruled that a company name on packaging constitutes a brand name.
- Generic terms like 'Value' or 'Choice' are viewed as part of the brand identity.
- Goods bearing any commercial identifier are ineligible for the specific GST tax exemption.
In short
The company asked if they could claim a GST exemption on food products by removing registered trademarks from their packaging. They wanted to know if keeping their company name and using generic quality words like 'Value' or 'Choice' would still count as having a 'brand name'. The tax authority decided that any name or mark that links a product to a business in the course of trade is a brand name. Because the company's name and identity remain on the package, the goods do not qualify for the tax exemption.
What has changed
How it worked before
Many businesses assumed that removing a registered trademark from product packaging was enough to qualify for GST exemptions intended for unbranded goods.
What has changed
The authority clarified that a 'brand name' is not limited to registered trademarks. Any name or mark that creates a commercial connection between the product and the seller is enough to disqualify the item from the exemption. This means businesses cannot simply strip away logos to claim tax-free status if their corporate identity remains visible on the package.
Who this affects
Retailers and food manufacturers who sell packaged goods and are considering removing trademarks to qualify for GST exemptions.
An example
A local grocery chain sells private-label rice. They remove their registered logo from the bag but keep the text 'Packed by [Grocery Chain Name]' on the label. Based on this ruling, the tax authority would likely view the company name as a brand identifier. Consequently, the rice would not qualify for the GST exemption for unbranded goods.
What you should do
Review your product packaging to see if your company name or brand identity is present. Understand that this ruling only applies to the specific company that asked the question and its local tax office. If you are in a similar situation, consult with a tax professional to assess your specific packaging before changing your tax filing position.
If you do nothing
If you assume this ruling does not apply to you and claim an exemption you are not entitled to, you risk a tax audit. A tax officer may demand payment of the unpaid GST plus interest and penalties. Relying on a ruling that does not legally bind your specific business can lead to significant financial liability.
The terms explained
- Brand name
- Any name, symbol, or mark that identifies a product with a specific business or seller in the eyes of a customer.
- Advance ruling
- A formal decision provided by tax authorities to a specific business regarding how tax laws apply to their particular situation.
- Exemption
- A provision in the tax law that allows certain goods or services to be sold without charging GST.
The ruling in detail
Authority for Advance Ruling
Aditya Birla Retail Limited
NO.GST-ARA-13/2017/B-16 Mumbai, dt. 23/3/2018 · Maharashtra
Questions before the authority
- Whether the subject goods, proposed to be sold under Stream 1, where the package of the subject goods would merely have a declaration mentioning the name and registered address of the Applicant as the manufacturer, as per the statutory requirement under Subject Statutory Provisions, can be considered as 'not bearing a brand name', and, accordingly eligible for exemption from GST in terms of relevant entries to Notification No.2/2017 Central tax (Rate) dated 28th June 2017 and corresponding entries under Notification No.2/2017-Intergrated tax (Rate) dated 28th June 2017 and Notification No.2/2017-State Tax (Rate) dated 29th June 2017?
- Whether the subject goods proposed to be sold under Stream 2, where the package of the subject goods would have a declaration mentioning the name and registered address of the manufacturer as per the statutory requirement under the Subject Statutory Provisions and also the declaration 'Marketed by- Aditya Birla Retail Limited' can be considered as 'not bearing a brand name', and, accordingly eligible for exemption in terms of relevant entries to the Exemption Notifications?
- Whether the declarations made on the package, by inter alia using common/generic terms viz. 'Value', 'Daily', 'Superior' and 'Choice', for the sole purpose of indicating the quality of the product so as to enable the customers to identify and buy products based on their requirements, budget and preferences can be construed to be a 'brand name' for the purpose of the Exemption Notifications?
Facts
The applicant is engaged in the retail business and sells various food products under the 'More' brand. They sought an advance ruling on whether packaging that includes their name and address as the manufacturer or marketer, along with generic quality indicators like 'Value' or 'Choice', would qualify as 'not bearing a brand name' for the purpose of claiming GST exemptions on food items. The applicant proposed to remove registered trademarks from the packaging to comply with the exemption conditions.
Ruling
| Question | What the authority ruled |
|---|---|
| Stream 1 packaging (Manufacturer name/address) | Answered in the negative. Considered to be bearing a brand name. |
| Stream 2 packaging (Marketer name/address) | Answered in the negative. Considered to be bearing a brand name. |
| Generic terms (Value, Choice, etc.) | The question cannot be raised in isolation. Refer to the answers for Stream 1 and 2. |
The Authority ruled against the applicant, concluding that the proposed packaging would still be considered as bearing a brand name. It held that the presence of the applicant's name and the 'More' brand identity, even without registered trademarks, establishes a connection in the course of trade. Consequently, the goods are not eligible for the requested GST exemption.
Reasoning
The Authority relied on the definition of 'brand name' and 'registered brand name' under the Exemption Notifications, which includes any name or mark used to indicate a connection in the course of trade. It reasoned that the applicant's name and the 'More' brand are well-known to consumers, and their presence on the packaging creates a clear commercial identity. The Authority cited Supreme Court precedents, such as CCE v. Grasim Industries Ltd., to emphasize that the **primary test is whether an indication of connection is conveyed** in the course of trade. Therefore, even if the applicant removes registered trademarks, the use of their corporate name on the packaging is sufficient to disqualify the goods from the exemption.
Provisions relied on
- Section 96 of the Maharashtra Goods and Services Tax Act, 2017
- Section 97 of the Central Goods and Services Tax Act, 2017
- Notification No.2/2017-Central Tax (Rate) dated 28th June 2017
- Notification No.2/2017-Integrated Tax (Rate) dated 28th June 2017
- Notification No.2/2017-State Tax (Rate) dated 29th June 2017
- Trade Marks Act, 1999
- Legal Metrology (Packaged Commodity) Rules, 2011
For the practitioner
This ruling clarifies that for GST exemption purposes, the **mere removal of registered trademarks is insufficient** if the packaging still displays a corporate name or brand identity that consumers associate with the supplier. Practitioners should advise clients that any name or mark serving as a commercial identifier will likely be treated as a 'brand name'. It does not decide the status of generic terms in isolation, as these are viewed in the context of the overall packaging.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/maharashtra_gst-ara-13_2017_dt_23.3.18_abrl.pdf
Legibility of the scan, as read: high.
Prepared 16-10-2026.
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