Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
Aug, 07 2017

De-Registering the food brands could not escape GST

Several brands, including some prominent basmati rice players, had deregistered some of the brands to avoid paying GST.

The government has decided to plug a loophole for food companies, which were deregistering their brands to avoid paying 5% goods and services tax (GST).

Sources said to check “tax avoidance”, any brand which was registered on or before May 15, will be deemed to be registered for paying GST, even if it is successfully deregistered. The registration under the Copyright Act or similar law abroad on or before May 15 will be treated as valid. While unbranded cereals, pulses and several other food products do not attract GST, those sold in “unit containers” and sold under a registered brand name attract 5% levy. As a result, several brands, including some prominent basmati rice players, had deregistered some of the brands to avoid paying GST.

Industry representatives have sought an end to the differential tax treatment, which the government is not keen on. The government believes that unbranded food products should not face a levy as they are consumed by the poor. While this had attracted the finance ministry’s attention a couple of weeks ago, the issue has now been taken up at the level of the GST Council, headed by finance minister Arun Jaitley, with his counterpart from the states being members.

On Saturday, Jaitley had said that the government had found a way to check avoidance but did not elaborate on the strategy. Sources said that the plan using May 15 as the cut-off date is expected to be finalised at the GST Council meeting next month.

Comment
Related opportunities
  • Quick Service Restaurants
    Kathi Junction – brings the golden opportunity to start your..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2009
    Investment size Rs. 5lac - 10lac
    Space required 100 sqft to 1500 sqft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater NEW DELHI New Delhi
  • Quick Service Restaurants
    Shawarma House- Franchisees Invited for an Established & Popular brand..
    Locations looking for expansion Haryana
    Establishment year 2012
    Franchising Launch Date 2015
    Investment size Rs. 20lac - 30lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Gurgaon Haryana
  • Laziz opens 100+ Stores across India in 2017 LAZIZ  PIZZA ™..
    Locations looking for expansion Maharashtra
    Establishment year 2010
    Franchising Launch Date 2012
    Investment size Rs. 5lac - 10lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolhapur Maharashtra
  • Quick Service Restaurants
    Looking for your own lucrative business in ever growing fast..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2012
    Investment size Rs. 10lac - 20lac
    Space required 200 - 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Rajouri New Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities