New Delhi: India Gate, the country’s largest selling rice brand, is exempt from paying goods and services tax (GST) because the company did not get the brand name registered under the Trade Marks Act 1999.“This is to further clarify, declare and certify that ‘India Gate, Indian Farm, Lotus and Unity’ brands are owned by KRBL Ltd but since they are not registered in Class 30 under ‘Trade Marks Act, 1999’ hence ‘NIL’ GST rate is applicable on it,” KRBL Ltd, which sells India Gate packaged rice, said in an internal communication dated 3 July. Branded rice was either exempt from tax or carried a 5% value-added tax, depending on the state where it was sold, before GST was implemented. Following the implementation of the indirect tax on 1 July, such products have become dearer in many states. KRBL’s largest competitors, including the Indian unit of McCormick and Co., which sells Kohinoor packaged rice in India, have to pay GST, making their products more expensive. KRBL’s rivals have been critical of the country’s largest rice brand not paying the 5% GST that is applicable on branded staples. They have also raised doubts about whether the definition of “registered brand name” has been interpreted correctly by the company to claim the GST exempt status. A KRBL spokesman said the company is following government norms. A spokesperson for McCormick in India declined comment. LT Foods Ltd, seller of the Daawat brand of rice, also declined comment. The finance ministry on 5 July clarified that “registered brand name” is a brand name or a trade name “which is registered under the Trade Marks Act, 1999” and should be on “the Register of Trade Marks and remain in force”. That KRBL does not have the brand registered wasn’t for lack of trying. The company has applied for trademark registration of the India Gate brand of rice and other staples multiple times since 1999 before the Controller General of Patents Design and Trade Marks, according to the Intellectual Property India website. Its applications were either objected to, opposed or refused. Vikram Roller Flour Mills Ltd was the last to hold the trade mark registration of India Gate brand. The registration was valid till November 2013, according to the website. It couldn’t be immediately ascertained whether it still owns the brand. Calls to the company’s landline weren’t answered. Vikram Roller still sells wheat flour under the India Gate brand. According to a 2 July statement by the finance ministry, GST on staples such as rice, wheat and cereals is zero. Abhishek Rastogi, a partner at law firm Khaitan & Co., said it is possible for a company to sell the product under a brand name and still claim zero GST. “If the name is not registered under the Trade Marks Act 1999 and not listed with the Trade Marks Registry, the brand will not attract 5% GST,” Rastogi said. That seems to be KRBL’s understanding as well. Interestingly, on 30 June, KRBL filed an application with the registrar of Trade Marks seeking cancellation of the name KRBL Ltd from the Trade Marks Registry. In its application, it said that the company was “not using the trademark KRBL Limited in relation to rice”. The company registered the trademark of KRBL Ltd on 24 July 2000 and this is valid till 24 July 2020. Shares of KRBL have gained 3.81% on the BSE since the GST was implemented on 1 July. The exchange’s benchmark Sensex rose 1.45% in the same period. KRBL claims that its flagship India Gate brand dominates the branded rice market in India with a 29.5% share in terms of value, according to a company presentation to investors in December 2016. The company reported net profit of Rs399 crore on revenue of Rs3,159 crore in the year ended 31 March. About 48% of the company’s revenue comes from India and the rest from exports. West Asian countries account for about 44% of KRBL’s revenue.
India Gate rice is exempt from paying the 5% GST rate on branded rice because KRBL Ltd did not get the brand name registered under Trade Marks Act 1999
Basmati rice (Lal Quila) Rs 10,700, Shri Lal Mahal Rs 11,300, Super Basmati Rice Rs 9,800, Basmati common new Rs 7,100-7,200, Rice Pusa (1121) Rs 5,800-6,400, Permal raw Rs 2,250-2,275, Permal wand Rs 2,300-2,350, Sela Rs 2,700-2,800 and Rice IR-8 Rs 1,875-2,000, Bajra Rs 1,360-1,370, Jowar yellow Rs 1,600-1,650, white Rs 3,300-3,500, Maize Rs 1,425-1,435, Barley Rs 1,575-1,595New Delhi, May 25 Prices of wheat and rice basmati fell by up to Rs 100 per quintal at the wholesale grains market today owing to muted demand against sufficient stocks position. Traders said besides low demand demand from flour mills, ample stocks position on increased arrivals from producing belts, mainly weighed on wheat prices. Tepid demand from retailers kept pressure on rice basmati prices, they said. In the national capital, wheat dara (for mills) declined by Rs 5 to Rs 1,730-1,735 per quintal. Atta chakki delivery followed suit and traded lower by a similar margin to Rs 1,735-1,740 per 90 kg. Rice basmati Pusa-1121 variety also fell by Rs 100 to Rs 5,800-6,400 per quintal. Following are today's quotations (in Rs per quintal): Wheat MP (desi) Rs 2,100-2,345, Wheat dara (for mills) Rs 1,730-1,735, Chakki atta (delivery) Rs 1,735-1,740, Atta Rajdhani (10 kg) Rs 240, Shakti Bhog (10 kg) Rs 240, Roller flour mill Rs 950-960 (50 kg), Maida Rs 960-970 (50 kg) and Sooji Rs 1,030-1,040 (50 kg). Basmati rice (Lal Quila) Rs 10,700, Shri Lal Mahal Rs 11,300, Super Basmati Rice Rs 9,800, Basmati common new Rs 7,100-7,200, Rice Pusa (1121) Rs 5,800-6,400, Permal raw Rs 2,250-2,275, Permal wand Rs 2,300-2,350, Sela Rs 2,700-2,800 and Rice IR-8 Rs 1,875-2,000, Bajra Rs 1,360-1,370, Jowar yellow Rs 1,600-1,650, white Rs 3,300-3,500, Maize Rs 1,425-1,435, Barley Rs 1,575-1,595.
Thanks to normal rainfall last year, the country’s foodgrain production in 2016-17 crop year (July-June) is estimated to reach an all-time record of 273.38 million tonne, which is 8.7% more than the previous year.
Anil Mittal's family business KRBL is reaping the benefits of its decision to penetrate the domestic market with new brands and varieties of basmati, while maintaining a strong export business
Trade sources believe that Iran is looking to use the euro in place of the dollar
New Delhi, Feb 8 (PTI) In restricted activity, rice basmati traded higher by Rs 100 per quintal at the wholesale grains market today on scattered buying by stockists following uptick in demand.New Delhi, Feb 8 (PTI) In restricted activity, rice basmati traded higher by Rs 100 per quintal at the wholesale grains market today on scattered buying by stockists following uptick in demand. However, other grains after moving in a narrow range on little doing, settled at the previous levels. Traders said, some buying by stockists following pick-up in demand from retailers against restricted supplies from producing belts, mainly helped rice basmati prices to close in positive zone. In the national capital, rice basmati Pusa-1121 variety went up by Rs 100 to Rs 5,900-7,300 per quintal. Following are today’s quotations (in Rs per quintal): Wheat MP (desi) Rs 2,800-3,100, Wheat dara (for mills) Rs 2,020-2,030, Chakki atta (delivery) Rs 2,030-2,060, Atta Rajdhani (10 kg) Rs 285, Shakti Bhog (10 kg) Rs 285, Roller flour mill Rs 1,120-1,130 (50 kg), Maida Rs 1,190-1,200 (50 kg)and Sooji Rs 1,250-1,260 (50 kg). Basmati rice (Lal Quila) Rs 10,700, Shri Lal Mahal Rs 11,300, Super Basmati Rice Rs 9,700, Basmati common new Rs 7,100-7,300, Rice Pusa (1121) Rs 5,900-7,300, Permal raw Rs 2,200-2,250, Permal wand Rs 2,300-2,400, Sela Rs 3,000-3,100 and Rice IR-8 Rs 2,000-2,025, Bajra Rs 1,440-1,480, Jowar yellow Rs 1750-1800, white Rs 3,500-3,700, Maize Rs 1,590-1,600, Barley Rs 1,800-1,820.
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