GST on MRP

GST stands for Goods and Services Tax. It’s been a month since it has been applied in Indian Economy but general people still have lots of confusion regarding this and there are several things that make it happen like that. Like if you are visiting a shop and check the MRP then close to that you can see the statement “GST Included”. On the other hand, some shops are selling same product but on checking the price, you can see the statement “Without GST”. This is confusing for any consumer as for how can a consumer knows that he is paying GST once or twice.

There is another complaint came in a notice that there are some shopkeepers charging GST upon MRP. MRP is Maximum Retail Price, means any shopkeeper can charge the up to the amount which is mentioned as MRP on the item. The shopkeeper is allowed to charge lower than the MRP on the basis of their investment and profit, but it cannot be higher than the MRP printed on the Packet of the product.

As per the rules, you do not have to pay GST if you are paying MRP as GST is already included in MRP. But if any seller is not following this then beware.

Ministry of Consumer Affairs has clarified this thing that GST is already included in MRP and therefore you do not need to pay more than the MRP. If any seller or company is selling their goods with additional GST then they have to declare this in the newspaper or other media mediums via ads. Also, the company has to use both the old and new MRP sticker on the product. For this, the companies and shopkeepers got 60 days time period.

Our Experts says that some shopkeepers are intentionally doing this activity to earn extra money by applying GST on MRP. People who are unaware of this are still paying to such shops/companies. But it is totally clear that there is no tax applied on the MRP as it is including GST. If you are getting a bill on which the GST is applied then you can contact to Central Government Helpline Number (1800-103-9271) and lodge a complaint against such company or shopkeepers.

Banknomics suggest you keep an eye on the bills of the products you are buying and do not pay additional GST if you are already paying MRP.

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