GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to changes in GST rates, and clarification (on Goods). The decisions of the GST Council have been presented in this note for easy understanding. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.
I. GST rate reduction on goods which were attracting GST rate of 28% :
A. 28% to 18%
- Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483
- Monitors and TVs of upto screen size of 32 inches
- Re-treaded or used pneumatic tyres of rubber;
- Power banks of lithium ion batteries. Lithium ion batteries are already at 18%.
- This will bring parity in GST rate of power bank and lithium ion battery.
- Digital cameras and video camera recorders
- Video game consoles and other games and sports requisites falling under HS code 9504.
B. 28% to 5%
- Parts and accessories for the carriages for disabled persons
II. GST rate reduction on other goods,-
A. 18% to 12%
- Cork roughly squared or debugged
- Articles of natural cork
- Agglomerated cork
B. 18% to 5%
- Marble rubble
C. 12% to 5%
- Natural cork
- Walking Stick
- Fly ash Blocks
D. 12% to Nil:
- Music Books 2 of 3
E. 5% to Nil
- Vegetables, (uncooked or cooked by steaming or boiling in water), frozen,branded and put in a unit container
- Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
- Exemption from GST on supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
- Exemption from GST on proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
- Exemption from IGST/Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
- Rate of 5%/18% to be applied based on transaction value of footwear
- Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
III. GST on solar power generating plant and other renewable energy plants
- GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.
- Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.
- To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate. 3 of 3
- Sprinkler system consisting of nozzles, lateral and other components would attract 12% GST rate under S.No. 195B of notification No. 1/2017-Central Tax (Rate) dated 28.6.2018
- Movement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for the further supply of such goods but for the provision of service does not involve a supply (e.g., movement of testing equipment etc.) and is not be liable to GST.
- The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44 attract GST at the rate of 12%.
- Concessional GST rate of 5% applies to the LPG supplied in bulk to an OMC by refiners/practitioners for bottling for further supply to household domestic consumers.
- While animal/cattle/aquatic/poultry feed are exempt vide S. No. 102 of notification No. 2/2017-Central Tax (Rate), this exemption would not apply to their inputs such as fish meal, meat bone meal, bran, sharps, oil cakes of various
oil seeds etc.
- Manure of determination of the classification of vitamins, provitamins etc. as animal feed supplements
- Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
- Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP falls under HS code 3923 and attract 18% GST rate.
- 18% GST is applicable on wood logs including the wood in rough/log used for pulping.
- Turbocharger is classified under heading 8414 and attracts 18% GST and not 5% GST.
- Fabric even if embroidered or has stitching of lace and tikki etc., and even if sold in three piece fabric as ladies suit set, will be classifiable as fabric and would attract 5% GST.
- Scope of concessional rate of 5% GST rate for specified equipment for waste to energy plant.
- Published in Goods and Service tax- GST
Trademark | Copyright | Patent | Design
As a business owner, if you have a unique idea i.e. likely going to be translated into a product or service or an algorithm, it is very important to think about the intellectual property right for this particular thing right from the beginning. Because intellectual property right (IPR) is something that gets less attention and is neglected which leads to big problems in the business in the future so it is going to be very important for us to understand the critical aspects of the intellectual property rights from some of our subject matter experts.
In the process of starting your business, if you’re going to be creating anything, whether it’s creating anything which is in literary or something in writing or it’s an artistic work or it’s music or even your brand or even designs, all of these things are intellectual property and capable of protection and more importantly monetization for you going forward.
There are a few aspects of IPRs which you must look at for registering your creation:
This is something you can do for protecting your brand/logo. This helps you in differentiating your products/services from other players in the market.
REGISTRATION PROCESS of Trademark:
Registration of a trademark can be done by two ways offline or online. Offline registration of the trademark can be done at one of the offices of the trademark register based on the jurisdiction. While online registration is called E-filing of a trademark.
E-filing of a trademark application is a new service provided by the trademark office. E-filing is beneficial and more useful than offline registration as it provides trademark application number immediately. It also provides online verification to assure error-free filing and obtain your filing date. It also speeds up the process. All the details can be saved in your PC and can see online history or track status of the applications filed by clicking “Status of filed application”.
The trademark registration application will be allotted to a Trademark Officer in the Trademark Registrar Office. The Trademark Officer would then review the trademark application for correctness and issue a trademark examination report. The Trademark Officer has the ability to accept the trademark registration application and allow for trademark journal publication or object the trademark registration application.
Duration of Trademark:
Trademark can be registered for a duration of 10 years. It can be renewed for a further period of 10 years on payment of the renewal fees. The trademark can be renewed by filling the form TM-R with transaction costs.
Documents required and Fee for Trademark:
A soft copy of the logo in JPEG format is required for the registration.
• Name and address of the proprietor of the mark or Name of all the partners if its a partnership firm. or also attached partnership firm deed.
- For Private Limited Company – COI and Name and address of Authorized signatures
• In case company if you submit MSME certificate the fees will be reduced. You have to pay only Rs.4500/ instead of Rs.9,000/-
• In case of sole-proprietary firm fees will be Rs.4500/- or in case of Company Rs.9,000/-
Types Of Trademark available:
- Names According to Section 9 or 11 of Trade Marks Act it should not be similar to with an earlier trademark.
- The Combination of Colours or even a single color in combination with a word or device according to Section 10.
- Letters, numerals or combination of both.
- Sounds Mark
It is a legal right which is given to the creator of the product for a fixed time period.
Through this the author enjoys the exclusive privilege to publish, broadcast, adapt, make derivative works, showcase and monetize the same. It could either be a literary work, a dramatic work, music or artistic work.
How to get Copyright for a website?
A website may contain a number of elements that are literary or artistic in nature. For example, words, graphics, videos, software and photos etc. As per the Copyright Office, you will have to file copyright registration request for each of these elements separately.
Duration/Term of Copyright
In the case of original literary, dramatic, musical and artistic works, the duration of copyright is the lifetime of the author or artist, and 60 years counted from the year following the death of the author.
In the case of cinematograph films, sound recordings, photographs, posthumous publications, anonymous and pseudonymous publications, works of government and works of international organizations are protected for a period of 60 years which is counted from the year following the date of publication.
Application Procedure of Copyright
Any individual who is an author or rights owner or assignee or legal heir can file an application for copyright of a work either by the e-filing facility or by speed post. However, with effect from August 01, 2014, the Copyright Counter for filing copyright applications has been closed in order to popularise the electronic filing. Online Filing Process:
Step 1- Applicant need to create a User ID at http://copyright.gov.in/UserRegistration/frmNewUser.aspx by filling basic details.
Step 2- After successful registration, browse http://copyright.gov.in/UserRegistration/frmLoginPage.aspx and Log In with credentials.
Step 3- Once you are Logged In, click on “e-Filing of Application” in the left menu.
Step 4- Click on the link “Click here for online Copyright Registration”
Stage 5- The online “Copyright Registration Form” is to be filled-up in four
Offline Filing Process:
a) Application for registration is to be made on Form XIV. Form can be downloaded from here-http://copyright.gov.in/frmformsDownload.aspx
b) Separate applications should be made for registration of each work.
c) Each application should be accompanied by the requisite fee.
d) The applications should be signed by the applicant or the advocate in whose favour a Power of Attorney has been executed. The Power of Attorney should also be enclosed.
e) Answer each and every column of the Statement of Particulars and Statement of Further Particulars specifically.
Send the documents by post to Copyright Division, Department of Higher Education, Ministry of Human Resource Development, 4th Floor, Jeevan Deep Building, Parliament Street, New Delhi : 110001 Email
Telephone No, – 011-23362436
A mandatory period of 30 days should be passed post obtaining the diary number so that no objection is filed in the Copyright office against your claim that particular work is created by you. If such objection is filed it may take another one month time to decide as to whether the work could be registered by the Registrar of Copyrights after giving an opportunity of hearing to both the parties.
If no objection is filed the application goes for scrutiny from the examiners. If any discrepancy is found the applicant is given 30 days time to remove the same. Therefore, it may take 2 to 3 month’s time for registration of any work in the ordinary course. The applicant himself or his/her leader may appear in the hearing according to S. 27 of the Act. As per section 72 of the Copyright Act, 1957 any person aggrieved by the final decision or order of the Registrar of Copyrights may, within three months from the date of the order or decision, appeal to the Copyright Board. The registration of a copyright thus, may take a period of 1 to 1.5 years.
List of Documents required to be submitted by Post along with application form. Refer to the document list based on Type of Work. Click here for list- Documents Required for Copyright Registration in India.
Fee for copyright:
The Fee can by paid either through Online mode or Postal Order or Demand Draft. List of Documents required to be submitted by Hand/ By Post along with application form.
3. Patent – The focus here is on proving the novelty of your creation. It needs to be a new invention for you to get a patent. Availing patent protection is a bit more complex than getting a trademark or a copyright. Generally, these are given for machines and pharmaceutical products.
4. Design – Registered designs are used to protect the external appearance of any object. These are primarily meant for protecting designs meant for commercial/industrial use. For instance, a Coca-Cola bottle.
IP – Investor’s Perspective
Whenever the company seeks funding from the investor community, IP – how it is managed and protected
– becomes an important criteria for them to decide. It helps investors figure out the long-term growth of the company. They check on a few key aspects like:
- IP ownership rests with the company and not with the founder
- Ensure that there are no arrangements of IP sharing.
- How frequently are the IP rights being reviewed?
- What are the legal implications for changes made to the brand or logo?
IP Registration Process
When it comes to registering your IP, say, for instance, trademark, the first thing which you need to figure out is to decide on its geographic spread – national registration or international registration. Under the Indian national regime of registration of a trademark, you can apply to any of the five registrars located at Mumbai, New Delhi, Kolkata, Ahmedabad, or Chennai for complete protection across India. The Registrar shall examine the application, post which it shall be published in the Indian Trademarks Journal. If no opposition is raised by any third party within 90 days, the Registrar accepts the trademark application.
Under the international regime, India is a signatory to various treaties, which allow for registration of a trademark in multiple countries with a single application process. Depending on the targeted countries you wish to register your trademark in, you can select any of the various international treaties such as the Madrid Protocol, European Community Trademark, etc.
Conclusion: When you think of any startup business you must have to Understand your intellectual property obligations. these intellectual property obligations build your band and secure your content & design.
In any business legal and statutory clarity is of utmost importance but unfortunately most early stage entrepreneurs do not have the clarity or do not do enough homework in order to make sure that they understand the legal aspects well, because of which at the end of the day the business bears the brunt. and most entrepreneurs realize it too late in the day regarding the various legal pitfalls and at that point of time Often steps are taken too late in the day by which time the legal aspects have already become very complicated so for any business before you start is going to be very important to ask ourselves three fundamental questions
- What kind of Registrations need to be made?
- What kind of permits need to be obtained?
- What kind of compliances need to be followed?
Types of Permits
There are generally two types of permits if you could broadly classify them. One would be the 1. Generic Permit – that go to any form of businesses. These would relate to tax registrations, service tax registrations to enable payments being made, withholding of taxes when payments are being made. Then there would be those which relate to generally 2. Office Setup – When it comes to office set up it could relate to shops and establishment, compliance with your municipal laws, which zones your offices are located at in the relevant areas. Very often people don’t realize that residential premises can’t be used for office purposes. There are municipal laws, there are municipal requirements, so the best way to go about it is not to do research yourself Best way to go about is engage a consultant, it could be a lawyer, it could be a consultant who deals in this area. The other thing is that when you set up your company and you get the registration of your company done, you also need to ask your lawyers that whether there are any 3. Industry Specific Permit or license is require and what I mean is that today for example, if you are in the media business. Let’s say that you have a television channel. You may require a license from ministry of information and broadcasting.
Permits are a legal form of authorization that allows you to do certain activities on the basis of certain permissions taken from the respective regulatory bodies. The purpose is of course to avoid any legal implications in future. The various types of permits and registrations are listed below:
1) Tax Registrations – Applies to almost all forms of business, namely PAN, TAN, etc. Certain other tax registrations apply depending on the nature of business, namely, Central Excise if goods are being manufactured, and Service Tax for activities that qualify as “services” under applicable tax laws, etc.
2) Office Setup Permit – These are permits which are required to commence any business as per certain acts like shops and establishment act, municipal laws, etc.
3) Labour Law Registrations – These apply to the employer for the benefit of its employees namely provident fund registration, gratuity, etc.
4) Industry Specific Permit – These are business specific permits which are required as per the industry. So, permissions are to be taken from respective ministries. For example, if you are operating in the media industry, you must get the license/approvals from the Ministry of Information and Broadcasting.
Tax Registration Documents:
It is good to have all the tax registrations in place even before you commence your business. Most startups tend to avoid and delay these activities, leaving it for the time when they start making revenues. This is not advisable, as it is a must to have your house in order, for it to function well, and on an ongoing basis. There are two basics that you need to have:
1. Permanent Account Number (PAN): It is a mandatory requirement for any business to have a PAN number before opening a bank account. PAN is used for paying direct taxes.
2. Tax Deduction Account Number (TAN): This is required when you make any third-party payments, say to the supplier of your goods/service. TAN is used for deducting tax at source.
Compliance is one of the key building blocks to a successful business. What compliance really does is it builds a process and in any organization structure whether internally or whether you are looking at it externally, compliance sets the discipline, it sets a certain motion to the organization.
Ineffective compliance creates a huge business risk for any entrepreneur. Issues with compliance keep getting complex as your business grows. Having processes in place help you avoid legal hurdles; gain investor confidence and improve operations. Not following the same, can lead to a number of setbacks, like loss of management time in correction, monetary penalties and loss of reputation.
For compliance purposes, you need to make certain filings for annual compliance, quarterly compliance and conduct board meetings as per policy. For all these, it is advisable to hire a Company Secretary.
When you seek investments, one of the first things that potential investors will look for is whether the company is legally compliant or not and whether the reported numbers are audited or not, etc.
In the case of the burgeoning e-commerce space, it is becoming important to follow relevant e-business policies. There are certain areas which need to be addressed like:
- Ensuring data privacy
- Following payment gateway rules
You should be able to:
- Understand the different types of permits required for your business
- Think through the required tax registration documents as per the law
- Acknowledge the importance of compliance and follow them