Over a dozen food & beverage companies get notice over trademark usage
The Directorate General of Goods and Services Tax Intelligence has issued show cause notices to over a dozen food and beverage companies regarding trademark usage by their franchises in states other than their registered offices. The notices demand around Rs. 3,000 crore for GST on trademark services since July 2017, potentially increasing tax complexities for the industry.
New Delhi: The Directorate General of Goods and Services Tax Intelligence (DGGI) has sent show cause notices to more than a dozen food and beverages companies over trademark usage by their franchises and outlets in states other than where they have their registered offices, officials in the know said.
The notices, sent in the first week of August, seek about Rs. 3,000 crore from the companies for the period starting July 2017 when GST was introduced.
