GST Impact - pulses, flour and rice mills hanging in the registered and unregistered brand name
September 23, 2017 at 8:59 AM ,
Rainbow Exports
GST Impact - pulses, flour and rice mills hanging in the registered and unregistered brand name
On July 9, the GST Council clarified that on 5th May, 2017, 5% of the registered brands will be GST, even if they are later registered as non-registered after the dough mills to stop the return of their licensed brands to avoid tax payments. The GST Council further clarified that under the Copyright Act, the registered brands will be 5%GST. Managing director of North Karnataka Roller Floor Mills, D. Manikchand Gadia said, "The clarification of September brings all the brands under 5 % GST and it will be effective from July 1, the date of GST being implemented. Mills have already sold their products at zero duty, so it is difficult for them to collect GST on the product already sold to the customers. If they do not do this then they will have to pay GST from their wallets'North Carnatic Roller Floor Mill sells gram flour, flour and flour under the brand Name. From this, at least the mills have to be forced to stop their operation.
Almost 1,400 flour mills are selling wheat and gram flour with open label in the country. The Indian Food Safety Standards Authority (FSSAI) has made it mandatory to print the details of the material on the packet and the manufacturer and distributor's address. Hence this statement printing is considered 'actionable claim'. This means that if the quality of packaged flour is poor, then there is no harm to the health, then the customer can contact the manufacturer and the distributor to compensate for this loss.
Veena Sharma, secretary of Roller Flour Millers Federation of India said, "We do not know for sure that the rate of GST has been implemented since the last date i.e. 1st July. We will wait for clarification on this. If GST was made effective from July 1, then it would be very difficult to save its existence for mills. Industry wants a clear definition of branded and unbranded products. '
Industry sources estimates that around 2,000 flour mills are going on in the country, out of which about 600 have registered trademarks. The remaining 1,400 mills produce flour, flour and gram flour, which is sold to bread and other processed food manufacturers. In a letter written to Prime Minister Narendra Modi, Manikchand said, "It will be difficult to save the survival of 5 percent GST because the prices of these local brands are not much in comparison to open products. These are sold in small packets because it makes transportation easier and it becomes easy for the producers and consumers to handle. Name on the packet is merely an identification of packets. Therefore it needs to be clarified whether a trademark holder can produce a non-registered brand. '
Who is owing brands are gone for cancelling the brands i.e Trade marks etc. But government has issued notifications that if people have cancelled brand name before 15th may will be eligible and others who has cancelled their registered brand name then too they will have to pay GST.
View related articles
