A Maximum Retail Price is a maximum price which can be charged from the consumers in India as specified by the authority figures. Under the Consumer Goods (mandatory printing of cost of Production and Maximum Retail Price) Act, 2006, consumers cannot be charged more than the MRP mentioned on the packing of the products.
After the implementation of GST, prices of many products just got some changes from the previously followed structure. The government has revised the MRP rules for the businesses and Consumer Ministry has directed the businesses to paste the new stickers with fresh pricing.
Latest Update
04th August 2022
- The recent decision to impose 5% GST on pre-packaged items, the Department of Consumer Affairs has published a letter clarifying the impact of GST on unsold products of pre-packaged items effect from 01.08.2022. The manufacturers, packers, and importers are permitted to display fixed MRPs on unsold stock up to 31st Jan 2023 as per the official letter.
MRP Rules After Implementation of GST
- If the price of the product has increased after GST imposition, the manufacturer of the said product needs to release an advertisement in at least two newspapers regarding the updated price
- Only the stocked products with the manufacturer are required to put on the advertisement. The new products coming after 1st July are not covered under the advertisement rule
- The advertisement rule is applicable for three months(1st July to 30th September) of implementation of GST
- If the price of the product has decreased after GST implementation, the manufacturer doesn’t need to advertise regarding the reduced price on newspaper
- In both the cases, if price of product has increased or decreased, manufacturer is required to put the new sticker along with old sticker for the stocked products till 30th September and for new products, the manufacturer will put only the revised price
Recommended: How to Check that Your GST Bill of Restaurant is Correct or Not?
Complaint Against The MRP If Seller Charges More
Latest guidelines issued by the CBEC stats that if any retailer asks for GST above the MRP of a product then the consumer can be clearly denied and the complaint must be lodged against him at the ministry and various anti-profiteering commissions setup in India.
MRP includes all the taxes and sellers are not liable to charge more over and above the mentioned price on the products. Manufacturers and sellers are only allowed to sell at the lesser price than MRP and offer a discount on MRP for particular products.
After implementation of GST, at some places, consumers are asked to pay more over MRP saying GST has increased the cost of the products. It is clearly defined in the directives that if the price has increased, the manufacturer has to put an advertisement for the same in at least two newspapers and it is required to put the old and new both price stickers for the old stocks until 30th September.
Uma Shanti, GST commissionerate, spoke regarding the consumer rights and provoked the consumer to the complaint if shopkeeper asks to pay more over MRP. As she said, “If products are sold at higher prices without following rules, action can be taken against shopkeepers. It includes a penalty of one year in jail or a fine up to Rs. one lakh,”
The consumer needs to be more aware of the prevailing conspiracies and if sellers ask them to pay more than the MRP, they can lodge a complaint regarding the same to the consumer ministry on www.tnlegalmetrology.in
Group of ministers, headed by Assam Finance Minister Himanta Biswa Sarma and the team of ministers which are the part of GoM has decided that there must be a new MRP rule which must state that all the packaged and products having MRP on them should be included the GST in the price itself. MRP is the maximum price which can be charged by a trader from the customer but in some cases, GST was been collected above the MRP.
According to the latest sources, it is mentioned that “We have suggested that when businesses issue invoice to consumers, the MRP should be inclusive of GST. The bifurcation in tax collection and sale price can be shown in the invoice while paying taxes to the government.”
MRP under GST Turns Strict
The Telangana metrology department has been doing a round of scan for any irrelevant MRP tagging on the products. The government has also stated that strict action will is taken against the offender. The penalty of 2000 to 25000 has been decided by the department which will be levied upon any malpractices. The main agenda is to stop the practices of collecting GST over the price tag i.e. MRP on the product itself.
CV Anand, the state’s civil supplies commissioner and legal metrology department’s controller mentioned that “Customers should be made aware that GST is included in the MRP and it should not be charged separately. Several complaints have come to light of additional GST being charged over MRP on packaged goods, and some non-taxed goods are also been taxed with GST. It is illegal.”
The department has also started a grievance cell to combat any complaint regarding the collection of GST over the MRP of the product.
Effects of GST Council Meeting on MRP
Vanaja Sarna, Chairperson of Central Board of Excise and Customs (CBEC) has communicated to all FMCG companies to revise the maximum retail price on all of the products, after the announcement of a reduction in GST rates on 10th November.
In a letter to all FMCG companies, Sarna pointed out that, it is essential that all companies must revise the MRP instantly on all of the products in line on which the tax rates have been reduced by the GST Council, the finance ministry said in a statement.
Sarna has also urged to all to promote widely the revised MRP of products. The government is expecting that the industry immediately takes some actions on request made by the finance minister on this issue.
Tax rates on the number of items have been reduced by the government from 18 percent to 12 percent and also from 12 percent to 5 percent. Some of the items on which GST rates has been reduced from 28 percent to 18 percent namely chocolates, custard powder, sanitary ware, dental hygiene, creams, polishes, deodorants, detergent, washing powder, watches, goggles, wristwatches, mattresses, razors, blades and many more.
Additionally, tax rates on items have been reduced from 18 percent to 12 percent include refined sugar, condensed milk, diabetic food, medical grade oxygen, hats, bamboo/cane furniture.
Whether MRP will Increase or Decrease after GST
The Goods & Services Tax (GST) regime was implemented in India in July 2017. GST is an indirect tax regime that has specific tax slabs for different categories of goods and services. Ever since the launch of GST, the MRP (Max Retail Price) of a number of goods has changed because of the change in the tax rates & amount.
MRP includes the base price plus GST/tax. As the tax rate changes, the MRP of the product either decreases or increases.
Another factor that affects the MRP under GST is the availability of ITC. In some cases of the act, Input Tax Credit is not available under GST, which means the MRP of such products will increase.
On the other hand, MRP of some products, including FMCG products, has reduced because of the reduced tax rate under GST.
GST Rules for Change in MRP Due to Increase or Decrease in Tax
As per the GST norms, a manufacturer is required to adjust the MRP of his/her products in the following manner:
- The product must show both previous and new MRP clearly. The new price should not replace or overwrite the original price.
- New MRP will be the exact sum of the old MRP and the tax change and not more. For example, if the old price was rs 200 and the tax increase due to GST is rs 20, the new MRP should be rs 220.
- The manufacturer who wishes to revise the MRP of his products must give at least two advertisements in newspapers, intimating the price change to the customers. At the same time, they must intimate the price change to the company director, legal metrology, and controller of legal metrology in respective states.
- Manufacturers, however, are not required to publish advertisements in newspapers in case the price of their product/s is reduced due to GST.
- In any case, the new MRP sticker along with the old MRP sticker must be placed clearly on the product package.
The rules were applicable only to products that were already in stock at the time of the launch of GST on 1st July 2017. Products coming after the GST launch were not needed to be advertised in newspapers. Manufacturers were required to advertise the new MRP for their stocked products for three months after the GST launch.
What can a Consumer do if Retailers Charge More Than MRP?
Even though retailers are strictly instructed to revise their MRP according to the new GST norms, there are some that are still charging the old rate or levying GST over the maximum retail price. In such a case, the consumer can file a complaint against the manufacturer/seller through proper authorities set up for this purpose.
GST or any tax is always included in the product MRP. In any case, a retailer can never charge more than MRP.
The Government of India has established a dedicated agency called National Anti-profiteering Authority, which is responsible to look into the cases where the benefits of GST reduction are not being passed to end consumers. At the same time, the authority examines whether ITC claimed by a taxpayer is legit or not. In case of a dispute, one can file a complaint with the National Anti-profiteering Authority
For Medicines a lot of medical store charges GST after Discount and the final price is more than MRP. Is this permitted For example they give 10-12 % discount and charge 18% GST Which will be more than MRP.
“Please consult GST practitioner”
Can suppliers keep different MRP of same SKU in two different states?
If allowed, he may do so
Good job please tell one thing bata India is selling shoes with two stickers of MRP at increased rates , is it accordance with law. Please with law source
Suresh Chandra Mishra Advocate from Lucknow
Hey,
Here I AM a retailer
Mrp price on any soft drink or any product which we can store in the refrigerator.
We have prob about mrp on products which is very low, we get products from dealers lesser than MRP about 3-5 rupee low. Nd we have to store it until it gonna sold out. After cool we hardly get 1-2 ruper per product .for storing it we have to pay a bill which is higher. ANd we hardly earn near about 8 to 12 k pr month in this amount we have to see about homeis , health issues, education,and all.
What well person do if hi is in dept and by that he wants to make extra money on it. In that situation, if anyone complains about it what that person does our family members will.
Your thing is correct. One day will come to that customer will wake up. Everywhere customers need to adjust. Why retailer cannot adjust with Rs. 1 or 3? Whenever anyone seller sells any product more than MRP if anyone complains there will be a penalty and jail. Then why unnecessary the sellers charge more money till Rs. 5 for cooling charges? (Here I am speaking about Nagpur people who are taking 5 Rs more on every cold drink / soft drink /milk and daily needs) If the seller is not getting more profit, then that product can be avoided. I don’t know why the retailers need to be very reached within 5 yrs? and what will do general man?
There is no MRP on the product, no expiry date, no manufacturing date, no ingredients. Where can I file a complaint regarding this? Bought this stuff from Flipkart
We refrain from answering this question as this is not related to our subject matter
Give a complaint to the Department of Legal metrology. In Tamil Nadu it is under the control of Labour department. Also, you can prefer a complaint before the District Consumer Officer, District Collector. In Tamil Nadu there is a useful APP- TNLMCTS, which could be downloaded from the play store. Use the app and give your complaint. If you can gather the evidence after buying the product, you can file a case at Consumer Coury and seek compensation.
Hi sir,
I have a doubt?
does manufacturer address is compulsory in the product packing?
we are selling facemask to wholesalers and our wholesales are saying that we as manufacturer need not put our address in the facemask packing. saying then their clients will approach us directly and wholesales will lose their business.
my auditor says that putting GST details in our invoice is not enough and we need to put the company name, address on in the product carton itself.
we pack 100 masks in a master carton and that master carton will have our company details. inside this master carton, there will 100 masks stuffed,, each packed in one cover with all my company details on it.
please advise
regards
ravi
Invoice must contain company name, address
Sir,
1. I want to trade PANEER.
2. I do not have any GST No.
3. I will buy paneer in bulk .
4. 2 blocks of 5 kg each will be packed in 2 ploy bags which UNLABELED.
6. This packs will be sold to retailers out side Gujarat
7. The retailer will sell further to customers in loose packing.
My question is… (i) will this PANEER attract GST ?
(ii) is it necessary for me to have GST No. ?
Kindly advise.
Thanks.
If your turnover exceeds the prescribed limit then only you need to get registered under GST otherwise not
Why Hyundai service centers are taking charge of GST and MRP?
Sir
My manufactured product cost is ₹ 540, I am adding branded company’s product ₹50 and ₹30 for another product and I make one box that contains all these products.
What should my MRP?
₹540+₹50+₹30= ₹620 or can I add ₹30 for the box that carries all these three items and charge for ₹650 inclusive of all taxes?
INR 650 should be your MRP
Hello,
I am a manufacturer who wishes to sell his products directly to retailers who can further sell it to end customers. This is the first time we are selling through this medium as earlier we were a B2B business dealing in capital goods and not consumer goods. I have the following doubts regarding MRP and GST.
For example: Suppose the cost of the product I manufacture is rs.100.
My profit margin is 30% on the cost of the good.
GST to be charged is 18%.
The MRP to be set is rs.200.
In such a case what is the GST I have to charge to the retailer? Is it 18% of rs 130?
Also in this case as a manufacturer how should I be setting the MRP considering GST and retailers margin and at the same time following govt. guidelines.
Please help.
GST is charged on the final cost of a product, here it is INR 200 so GST is charged on it
On of the seller offers a 50% discount on MRP is he allowed to charge GST over and above the discounted amount, since MRP is already inclusive of GST, thus discounted amount should also be inclusive of GST
MRP 1599
DISC 50% (799)
Disc amount payable = 799
Now they are charging 5%GST as transaction tex for this amount
Is this correct??
pl tell me if they are doing wrong, then also tell me in which GST section is not allowed to take this extra GST again.
GST is chargeable only on INR 799 not on INR 1599
thank you for your reply but u said GST is chargeable only on INR 799 not on INR 1599, but as per MRP rules all tax is included, then how can they charge GST on a discount rate of MRP, pl suggest me
Sir, all taxes on the taxable value of goods is included, not on the discounted value of goods
Hi,
Any update on this rule, because for the similar question you have given the different reply
December 19, 2018, at 11:48 pm
I purchased a product for rupee 1000(M.R.P). They said I have a discount of about 60%. Then they mentioned in their T&C that “extra taxes” and in the bill, it had a T&C that “tax will be charged at the applicable rate on the discounted price”
I had to pay the tax for the 40%(which is already containing tax amount as mentioned in their price tag). Is that right to charge GST after giving the discount on M.R.P.
REPLY
SAG INFOTECH
December 24, 2018, at 6:58 pm
No, GST cannot be charged on MRP as it is inclusive of taxes, and even after discounted value 40% portion is inclusive of GST.
Sir, Please contact to GST practitioner
This is the same thing that was happened with me, actually in old tax regime a backward calculation is done to find the tax amount, and the transaction value would not be the price after discount .
This would be the case of double
taxation.
Can 2 different online portal can have 2 different MRP of same product in fashion and lifestyle category?
Yes
Hi,
Please suggest, I have not mentioned discount on the bill. The bill is a net of Discount. what would be the penalty procedure of penalty if the department caught my goods on the way and asked me to bear penalty on MRP
In the GST portal, there is no option of a discount. whatever the amount you will enter it will be deemed as after discount or net taxable value. For penalty procedure please contact GST Practitioner.
Dear Sir,
How much maximum percent discount can be mentioned on the bill by a manufacturer to his/her dealer that will not be considered as under billing or fake billing by the tax department.
Sir, this totally depends upon you accounting billing system, we can’t provide you the fixed rate of discount percentage.
Hi, Let me know the written matter compulsorily required on the MRP labels. Like manufacturing date, MRP, model no, etc.
Yes
I would like to know I have buy new tyre where there is no MRP , where is Tube is having . Why Tyre is not having
It depends upon the vendor of tyre that whether MRP act is applicable to them or not. You have to contact the vendor.
Hello,
Is it mandatory to have MRP for industrial products?
Selling school notebook without MRP by the vendor. is this punishable if yes then what is a penalty on the vendor?
Legally, all the packaged products should bear a printed price/MRP on it. Penalty may contain fine or imprisonment or both depends on the circumstances of your case. Thus you have to raise a complaint first on the contact details provided.
Sir,
We have sent 3 boxes worth Rs.1800.00 to retailers for sale but by mistake MRP not mentioned. what is the penalty and remedy in such cases while we have paid proper GST.
Please contact GST practitioner
IF, SUPPOSE I PURCHASED 100 UNITS GOODS WORTH MRP INR.100 ON WHICH TAX IS APPLICABLE AT A RATE OF 28%. ON A DAY, I AM HAVING ONLY 25 UNITS LEFT AND GOVT. CHANGED GST RATE FROM 28 TO 18%. THEN WHAT WILL I DO?. DID I NEED TO REVISE MY PRICE AND IF I DO SO, DID I ALSO NEED TO INAVAIL MY ITC ALREADY CLAIMED AT 28%? PLEASE REPLY.
Yes. the same needs to be done as you cannot sell at earlier price after notification effecting price reduction is implemented.
I purchased a product for rupee 1000(M.R.P). They said I have a discount of about 60%. Then they mentioned in their T&C that “extra taxes” and in the bill, it had a T&C that “tax will be charged at the applicable rate on the discounted price”
I had to pay the tax for the 40%(which is already containing tax amount as the mentioned in their price tag). Is that right to charge GST after giving the discount on M.R.P.
No, GST cannot be charged on MRP as it is inclusive of taxes and even after discounted value 40% portion is inclusive of GST.
It is a restaurant. I ate food worth 100 rupees and bought their own packeted snacks worth 100 rupees printed as its MRP. The final bill was 200 plus GST over 200. Can they ask me to pay GST over the packeted food, because the printed MRP is 100? My question is whether the final bill is 100 + (100 + 100 multiplied by GST rate) or is it 200 + (200 multiplied by GST rate).
MRP is inclusive of taxes so GST cannot be again charged on it. GST shall be chargeable on Rs. 100 only.
The final bill is 100 + (100 + 100 multiplied by GST rate)
GST cannot be charged again on MRP since Rs.100 is inclusive of GST component.
if mrp =200,
selling price=190
Gst=18%
190*18/100=34.2
190+34.2=224.2
It is correct
No, MRP is inclusive of GST, so actual selling price is 200*100/118=169.49 and GST is 200*18/118=30.51
Please suggest, does Besan 35kg Bag required MRP?
Every product has MRP which is independent of the quantity
When I went to purchase a wall mount fan, the trader offered a discount price of Rs 1750/- without GST and Rs 2065/- GST. Is it correct? Can he sell goods with or without GST at Customer’s choice?
No, he cannot. As it is necessary to issue invoice against item sold if he is registered and to charge GST on same.
Footwear below MRP 999.00 GST is now 5%. Is it necessary to print MrP on the product and is it necessary to mention product detail on the invoice.
Yes, as per CGST Rules, it is necessary.
I’M A NEW SELLER. PLEASE TELL ME THAT I HAVE TO CHARGE GST ON PURCHASE VALUE OR AFTER ADDING MY PROFIT. FOR EXAMPLE:
I
PURCHASE GOODS RS. 9800 GST RS. 490 TOTAL COST RS. 9800+490 = 10290
MY PROFIT 2000
SO NOW I CHARGE GST FROM CUSTOMER ON RS. 10290 OR RS. 12290.
GST shall be applicable on Rs. 11,800(9800 cost+ 2000 profit)
I have purchased a product at no discount from the Shoppers Stop. The MRP on the product was Rs. 2375 and Rs 225. When I checked my bill, there were GST charges on top of MRP. Is this the practice for the shops in Mall or with any big retailers?
Please suggest what actions I can take if this is malpractice.
This practice is not correct as MRP is inclusive of taxes and person cannot charge GST again on MRP. If this is happening contact helpdesk of GST for the same.
What should we do if shopkeeper wants GST on (over) MRP…?
Sir,
Recently I purchased a pair of shoes online which showed 50% discount on MRP and when it was billed it showed MRP less 50% discount and add GST which was making value higher say for example 5599 MRP after 50% discount it came to 2800 plus. I was levied 503.82 as a GST making total 3303.82 is this valid calculation or some fraud was done, kindly explain.
YES THIS IS VALID BECAUSE AFTER DISCOUNT AND ADD GST 3303.82 IS NOT MORE THAN MRP.5599
I just bought some goods from a shop and got 50 % discount on the MRP rates. In the bill, the seller charged 5% GST over the discounted price saying since the discount is above 10% he has to charge 5% GST. is it legal to charge extra tax since he is giving discounts?
A dealer can sell goods below MRP by offering discounts and charge GST on it. In such transactions, you need to ensure that sale value plus GST should not increase MRP.
Is there any notification for the same.
I am a dealer of lubricants, The MRP is Rs.2419.00. distributor give 21% discount on MRP and then charge GST 18% is this calculation is right? and one more question is he said me that he gives me 21% discount which is not received by me practically. Please advise me how the bill of the distributor is giving to me?
Treatment of dealer is at par with rules defined under GST, discount given before or at the time of supply will be reduced from the value of supply So the tax will be the levy on the reduced value.
Sir,
Please calculate A sample text as
MRP-2419
Tax- 18%
Disc- 21%
Invoice price ?
A MRP-2419 2419
B Tax- 18% 343.9818 (A-C)*18%
C Disc- 21% 507.99
D Invoice price ?
Invoice Price would be as under
Taxable Value 1911.01 (MRP-Discount)
GST 343.9818 18% of Taxable value
Gross Value of Invoice 2254.9918 Total
I HAVE PURCHASED 1 GARMENT FROM RETAILER WHO IS REGISTERED UNDER COMPOSITION SCHEME. M.R.P OF THE PRODUCT IS 1599.00. WHICH IS INCLUSIVE OF GST.
I TOLD RETAILER TO DEDUCT GST FROM MRP AS HE IS UNDER COMPOSITION SCHEME, AND HE CAN NOT CHARGE GST AS PER LAW.
PLS CLARIFY, CAN HE COLLECT GST OR NOT.
THANKS
Composition dealer cannot charge GST over and above sale value of goods, so if he does not mention GST clearly in the bill, then he can do this.
If we are dealing in a product with govt sector where the product margin is not very high and we have to abide by the rules of the govt sector where following points are to be considered :-
1)we have to pay bank guarantee which stays with them for more then 2 years .
2)their documentation fees are very high .
3)the validity of the offer has to be for more then 180 days as the time taken to finalise the offer is a long process , it takes atleast 90 days to understand whether we are allotted the tender or not , constant follow up consuming time of man hours .
4) Delivery has to be done by us to their different locations.
5) The payment terms are very different it takes atleast 60to 90 days to receive after constant follow up which again consumes man hours , after receipt of payments there are lot of deduction like retention amount etc which we have to again follow up after few months to receive it back where again we have to spend man hours again.
Considering all this above it is very difficult to sustain in low margin . kindly advise can we quote higher then MRP as we agreeing to customers terms and condition of the buyer , where as in MRP it should have been selling the product at the terms and condition of the seller . pl advise .
Provision of act will not to be altered for conforming with the conditions of buyer and seller, so buyer and seller need to adhere the provisions of MRP act, and not to charge more than MRP.
We are manufacturing cosmetics in India. For the Indian market, our products printed with MRP and for export packing there is no MRP printed on it. My question that is it necessary to print MRP for FMCG products in India?. In some cases, we have to supply the Export packing (no MRP) to our foreign customers while they visit our Firm for various reasons. Can we sell those products (without MRP) to our foreign customers?
hi..just wanna ask if the MRP of the product is rs 1000 and the customer asks to reduce the GST rate on the MRP and then ask the seller to reduce the discount percentage on the amount received after deducting GST on it and after that, the consumer ask the seller to add the GST rate on it…Is it valid …can it be given?
Sir, My product MRP is 292 & selling price is 60 can I bill for this price.
Billing price is transaction amount, on which the supply has been done and tax has been charged.
I have seen few products in the market having different MRP for different states, almost 25% difference. I want to know that in GST system where there is one type of tax system how could there be different MRP? Is it legal or illegal? Are those companies trying to fool the mass and government?
Logistics costs, operational costs, cost of living of employees among many such factors – they vary from place to place.
Hi, I want to know if we have to put the MRP on Industrial chemicals which do not go to any individual consumer. It goes only to industry directly.
As per legal metrology act, packaged commodities meant for industrial consumers, will not mandatorily be required to print MRP on goods.
Hello team,
I have purchased jeans yesterday from one store. MRP is showing 3299 inclusive of all taxes & there is the sale of flat 50% in store. So, i bought jeans but at a time of payment they took 1847 price from me & in invoice they shows 1649.50 price after discount + 12% sgst = 98.75 & cgst = 98.75. So, I want to know that how can anyone charge over the MRP price when price tag shows price is inclusive of all taxes.
Thank you
Also as per recent clarification by dept., no supplier can charge GST over and above MRP.
Very well informative article. Thanks
If I start selling shoes on e-commerce and sell shoes of MRP Rs.999 at Rs.499 only, what will be the GST slab,5% or 18% of which I will be charged.
Footwears up to the value of Rs. 500/- per paid will attract GST @ 5%, other than this will attract 18% GST.
SIR PLEASE TELL ME IS THERE ANY LAW IN GST THAT MANUFACTURES OR TRADERS DOES NOT LESS MORE THAN 50% from MRP, HST SUPERINTENDENTS CAUGHT VEHICLE FOR DETENTION ASKING THAT YOU COULD NOT GIVE DISCOUNT ON BILL MORE THAN 50% plz reply me with proper guidance
No such provision under the GST law.
What is the provision of MRP act – in a situation where a set of items are in a box and the printed MRP on the box is more than the total of the printed individual MRP.
WE ARE THE MANUFACTURER OF HOTEL BATHROOM SLIPPERS (DISPOSABLE) AND SUPPLYING DIRECTLY TO VARIOUS FIVE STAR HOTELS. HOTELS PROVIDE THESE SLIPPERS TO THEIR GUESTS AS AMENITIES AND HOTELS DONT SELL THIS PRODUCT DIRECTLY TO THEIR GUESTS.
DO WE REQUIRE TO MENTION MRP ON OUR PRODUCT?
As per legal metrology act, MRP is not required to mention on goods sold to hotels for their self-consumption.
Govt should develop apps for complaint against those shop who is charged extra amount on the name of GST. Than consumer can raise a complaint and add bill too so.
Govt has set up an anti-profiteering committee for redressal of customer grievances.
I have taken a credit limit from the SLICE PAY it’s a student loan app, so now I made delay in pay and they added the penalty for that and also added GST for the penalty. Is that GST is available for interest amount also.
As per GST valuation rules, Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value.
I purchases winter wears at 60% discount on MRP but the seller is charging GST on discounted value but I think GST is included in that value. Am I RIGHT??
Yes, GST should not be charged separately for MRP based goods.
If the packaged bottled water in Restaurants is having MRP of 50/- and there was a text on the bottled saying “MRP as per Selected channels”. I want to understand what is this explicit text means and why the regular 20/- water bottle should be priced as 50/-
if a seller offers a 50% discount on MRP is he allowed to charge GST over and above the discounted amount, since MRP is already inclusive of GST, thus discounted amount should also be inclusive of GST
MRP 5599
DISC 50% (2799.50)
Disc amount payable = 2799.50
Now they are charging 18% for this amount
Is this correct??
No, GST cannot be a charge on the discounted MRP. It is already inclusive of GST.
I purchased the shoe with MRP on bill 3999. Bill also showed R.P 3386. The GST of 9% was levied on 3386. But shopkeeper took 3999 from me.
GST rate on shoes above Rs. 500 is 18%. So the shopkeeper should show the price + GST @18% in the invoice. So the price is correct if the price charged is 3999 so this is price inclusive of GST.
3999/109*100 = 3668 actual price of shoes
MRP 3999/118% = 3389 (BASIC)
THERE NO SLAB OF 9%
GST SLAB 0%, 5%, 12%, 18% & 28%
IN YOUR CASE IT IS 18%. AGIAN CHECK THE BILL.
SGST 9% + CGST 9%
I had an incident yesterday, I was at any random restaurant and they were charging me Coca-cola bottle at 76 rupees and its prices were 34 MRP but they were saying that we charge in per glass basis but I refused to pay coz I think restaurant charge per glass basis but if you are buying a packed bottle nobody can charge you any extra penny but I am confused is there any act or something for restaurants to pay cold drinks, water or other packed food higher than MRP ?
If the restaurant is selling a packed bottle of cold drink then they should charge only MRP.
Is there any helpline number or email on which a complaint can be sent regarding breaking of MRP rule??
Email : helpdesk@gst.gov.in
Phone: 0120-4888999 , 011-23370115
Twitter: @askGST_Goi , @FinMinIndia
GST CAN CHARGES ON MRP AFTER DISCOUNT
PLEASE CONFIRM
“Under the consumer laws the MRP is inclusive of GST, so whenever a discount is offered, it is on MRP, hence it is illegal to charge the GST, on the discounted price. The consumer forum and national commission has passed many orders terming the practice as unfair and imposed penalties but it is still continuing”