As regards to the UT Chandigarh adjudication it is unfair business practices. It can be challenged in court. One can sell less then the MRP price depends on the seller, and as per GST Act the tax has to be paid on the price at which you sell
Yes you can not sell more then the MRP rate but anyone can sell lesser then MRP
There is under GST two opinions one from the state sales tax department and the second from Central Excise and customs
Both these Government department have different opinion as there mind set is different as they still need to get used the principle of GST. They have to change , so do we more
Yes you can not sell more then the MRP rate but anyone can sell lesser then MRP
There is under GST two opinions one from the state sales tax department and the second from Central Excise and customs
Both these Government department have different opinion as there mind set is different as they still need to get used the principle of GST. They have to change , so do we more
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Sir National Commission has already adjudicated on the similar issue. more
Oct 06
Sir, Thanks for your post. It would have been better if you would have commented on the same post so as to keep under same document. Nevertheless I would also like to state that even National Commission has also adjudicated the matter on the same ground. Any discounted prices offered by the retailers are already inclusive of taxes and hence second charge of tax is unfair business. I would put up a question say if any commodity having MRP inclusive of taxes @10% is offered at a discount of 5% what would be the billing. more
Oct 06
If MRP is Rs. 100 inclusive of VAT of Rs. 10, the selling price after 5% discount would be Rs.95.50, which is lower than MRP.
Calculation goes this way. Reduce Rs. 10 from MRP, allow a discount of 5% on remaining price of Rs. 90 and which would be Rs. 4.50. Then add back the VAT amount of Rs. 10. Resultant selling price becomes Rs. 95.50.
We need to remember here that, the discount is offered on 'Price' and not VAT. If the retailer specifically mentions a % discount on MRP, then he will offer discount on VAT also but he will have to pay the discounted VAT amount from his profit margins because, to government, he will have to pay exactly the same VAT amount which was included in MRP.
In the order under discussion, the Judge was unable to differentiate between 'Maximum Retail Price (MRP)' and the selling price. more
Calculation goes this way. Reduce Rs. 10 from MRP, allow a discount of 5% on remaining price of Rs. 90 and which would be Rs. 4.50. Then add back the VAT amount of Rs. 10. Resultant selling price becomes Rs. 95.50.
We need to remember here that, the discount is offered on 'Price' and not VAT. If the retailer specifically mentions a % discount on MRP, then he will offer discount on VAT also but he will have to pay the discounted VAT amount from his profit margins because, to government, he will have to pay exactly the same VAT amount which was included in MRP.
In the order under discussion, the Judge was unable to differentiate between 'Maximum Retail Price (MRP)' and the selling price. more
Oct 06
We discussed earlier also no one is going to complain and going to court ,it's just wast of time . You also know and saker too .So all this is going on and on . more
Oct 05
