Subway takes the Indian tax department to court over GST on intellectual property rights The fast food chain dragged the Indian Tax department to the court over alleged forcing to pay differential GST on the services rendered. In India many multinational companies work through different franchise model. The tax department is questioning the nature of the agreement and wants to levy 18% GST on income or Royalty. Presently the companies are paying 12% GST on the amount as they claim that they are not transferring the brand name or allowing the Indian entity to use the brand name for perpetuity. Advocate for the petitioner stated that investigation cannot be initiated when there is no case of tax evasion and that no recovery of demand can be done without issuance of a show cause notice and the speaking order. We at Reddy and Reddy law firm have substantial experience in dealing with matters related to the commercial law field including matters related to the intellectual property rights. We as a group of individuals working here are regularly involved in presenting the cases at NCLT, NCLAT, DRT and other commercial tribunals in India