Case Law Details
In re Tea Post Private Ltd (GST AAR Gujarat)
Question-1: Classification of any goods and services or both for which ‘Franchisee Fees’ and ‘Royalty’ received by the applicant under the franchisee agreement from the franchisee for the right to use its trademark, brand name and other proprietary knowledge (Intellectual Property).
Answer: “Franchisee Fees” and “Royalty” received by the applicant under the franchise agreement from the franchisee for the right to use its trademark, brand name and other proprietary knowledge (Intellectual Property), are to be classified under Heading- 9983-“Other professional, technical and business services” and Service Code (Tariff)- 998396 – “Trademarks and franchises” and accordingly, will attract GST @ 18%.
Question-2: Does transfer of an operational outlet (as mentioned in the Description), would amount to “Services by way of transfer of a going concern, as a whole or an independent part thereof”?
Answer: Answered in the negative, as discussed above.
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