17 September 2017
In the 21st GST council meeting held on 9th sep it was mentioned that mark or name in respect of which actionable claim is available shall be deemed to be registered brand name. what kind of scenario will be covered under actionable claim. please give some examples. Dal or flour Miller's who uses their mark or name on the packing will be liable for 5% GST
17 September 2017
madam what dose actionable claim mean here. If brand is registered than there is no doubt it is registered trademark . but why actionable claim specifically mentioned. What is difference btw reg trademark and mark with actionable claim
03 August 2024
The term "actionable claim" and its relationship with "registered brand name" in the context of GST can be a bit nuanced. Let's break it down:
### **1. What is an Actionable Claim?**
**Actionable Claim** is defined under the **Transfer of Property Act, 1882**, and typically refers to a claim to any debt or other actionable right that can be transferred. In simpler terms, it's a right or claim that can be enforced through legal action.
**Examples of Actionable Claims:** - **Receivables:** Claims for payments that a company is entitled to receive from customers or clients. - **Debts:** Claims on amounts owed by debtors that can be legally pursued. - **Arrears:** Claims for unpaid amounts from loans or contracts.
In the context of GST and trademarks, an "actionable claim" can be interpreted in relation to intellectual property rights.
### **2. Registered Trademark vs. Mark with Actionable Claim**
**Registered Trademark:** - **Definition:** A trademark that is officially registered with a relevant government authority (like the Trademark Registry in India) and is legally protected. - **Rights:** The owner has exclusive rights to use the trademark and can prevent others from using a similar mark. - **GST Implications:** Goods or services bearing a registered trademark are typically subject to GST at the applicable rate.
**Mark with Actionable Claim:** - **Definition:** A mark or name that, although not officially registered as a trademark, has some legal standing as an actionable claim. This could be a mark or name used by a business where there is a claim or right associated with it that can be enforced or protected in some manner. - **GST Implications:** If a mark or name is recognized as an actionable claim, it is treated similarly to a registered trademark for GST purposes.
### **3. Specific GST Implications:**
In the 21st GST Council meeting held on September 9, it was discussed that a mark or name in respect of which an actionable claim is available will be deemed to be a registered brand name. This means:
- **Marks or Names with Actionable Claims:** These are treated as registered brand names for GST purposes, even if they are not officially registered trademarks. - **GST Rate for Brand Names:** If a product is branded with such a mark or name, it may be subject to GST at a lower rate, such as 5%, if that’s the applicable rate for branded goods under GST.
**Examples:**
1. **Dal or Flour Miller:** - If a miller uses a distinctive mark or name on their packaging that qualifies as an actionable claim (even if not registered), they may be subject to a 5% GST rate, similar to products with registered brand names.
2. **Unregistered Trade Names:** - If a company uses a unique name for their products, which is recognized and associated with their business but is not formally registered, it could still be considered a brand name for GST purposes under the actionable claim provision.
### **Summary:**
- **Actionable Claim:** Refers to a legal right or claim that can be enforced. In the context of GST, it can mean a mark or name that is recognized or protected in a way that allows it to be treated similarly to a registered trademark. - **Registered Trademark vs. Actionable Claim:** Registered trademarks are officially recognized and protected. Marks with actionable claims may not be registered but have some level of legal recognition or protection, which can influence GST treatment.
In essence, the GST Council's inclusion of actionable claims means that even if a mark or name is not officially registered, if it is used consistently and has legal standing, it can still be considered a brand name for GST purposes, possibly allowing for the application of lower GST rates.