Chemist levying GST on discounted MRP
Participants here have posted wonderful views, comments, and suggestions based on individuals' experiences and understanding of the market behaviour - of the consumers, manufacturers, distributors, chemists and doctors. All are important. My comments here are on one particular aspect and that is price mark up as MRP and the taxes on sales eg GST/CGST only. My comments are restricted to the GST/CGST regime only, not the one prior to this.
I am attaching copy of a representative Tax Invoice of a chemist of the medicines sold to a consumer. Please, examine it with a sense of responsible buyer not of pharmaceutical and allied products only but also as a buyer in all various segments of retail market because the MRP under the Packaged Commodity Rules is inclusive of all taxes. Now read the Tax Invoice:
a) The total value of the Invoice based on MRP... Rs.4,798.75 P. inclusive of all taxes
b) Discount given on MRP ... ... ... ... ... ... Rs. 862.82 P.
c) Balance after deducting discount (New MRP)... Rs.3,935.83 P. inclusive of all taxes.
d) Chemist charges GST/CGST ... ... ... ... Rs. 421.58 P. while the price of medicines as per the Drug Price Control Order under Packaged Commodity Rules prescribes "Inclusive of All Taxes" and this fact is mentioned on the wrappers (aluminium foils) of the medicines that you would have noticed from your own purchases.
Issue before the consumers of all hues and all wings of the Government of India in the Ministry of Finance (Revenue) i.e. CBDT/CBCI, Drug Controller of India, NPPA, and the Ministry of Consumer Affairs in the Directorate of Weights & Measures the functionaries of which are all consumers of these goods and services and are well informed about the Acts and Rules, is "HOW COULD THE RETAILER ie THE CHEMISTS COULD CHARGE GST/CGST ADDITIONALLY WHILE THE SAME HAS ALREADY BEEN INCLUDED IN THE MRP?"
To know the impact of this illegal charge of GST/CGST, please, consider the invoices that the patients submit to various authorities for reimbursements, to insurance companies, and may be others I am not aware of. Have you imagined the total loss on this account to the state exchequer besides the community of consumers - into trillions of rupees which the NCDRC (Case No. OP/65/2003) and the Hon'ble Supreme Court dismissed the Appeal (made under the Act) as withdrawn) has just overlooked, while the authorities bask in the freedom of "Together in Corruption".
Your comments are awaited, while the authorities will keep sleeping. more
I am attaching copy of a representative Tax Invoice of a chemist of the medicines sold to a consumer. Please, examine it with a sense of responsible buyer not of pharmaceutical and allied products only but also as a buyer in all various segments of retail market because the MRP under the Packaged Commodity Rules is inclusive of all taxes. Now read the Tax Invoice:
a) The total value of the Invoice based on MRP... Rs.4,798.75 P. inclusive of all taxes
b) Discount given on MRP ... ... ... ... ... ... Rs. 862.82 P.
c) Balance after deducting discount (New MRP)... Rs.3,935.83 P. inclusive of all taxes.
d) Chemist charges GST/CGST ... ... ... ... Rs. 421.58 P. while the price of medicines as per the Drug Price Control Order under Packaged Commodity Rules prescribes "Inclusive of All Taxes" and this fact is mentioned on the wrappers (aluminium foils) of the medicines that you would have noticed from your own purchases.
Issue before the consumers of all hues and all wings of the Government of India in the Ministry of Finance (Revenue) i.e. CBDT/CBCI, Drug Controller of India, NPPA, and the Ministry of Consumer Affairs in the Directorate of Weights & Measures the functionaries of which are all consumers of these goods and services and are well informed about the Acts and Rules, is "HOW COULD THE RETAILER ie THE CHEMISTS COULD CHARGE GST/CGST ADDITIONALLY WHILE THE SAME HAS ALREADY BEEN INCLUDED IN THE MRP?"
To know the impact of this illegal charge of GST/CGST, please, consider the invoices that the patients submit to various authorities for reimbursements, to insurance companies, and may be others I am not aware of. Have you imagined the total loss on this account to the state exchequer besides the community of consumers - into trillions of rupees which the NCDRC (Case No. OP/65/2003) and the Hon'ble Supreme Court dismissed the Appeal (made under the Act) as withdrawn) has just overlooked, while the authorities bask in the freedom of "Together in Corruption".
Your comments are awaited, while the authorities will keep sleeping. more
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The Department of Consumer Affairs is deaf to this problem of consumers. If I say that they are partners in the generation of black money, probably, I may not be wrong. Otherwise they would by now taken some action towards impressing upon the Revenue Department of the Ministry of Finance (CBDT) the need of explaining the wrong to the consumers in these Local Circles. more
Dec 09
This problem continues and government is not taking any serious step, which should have been. more
Nov 21
This is illegal as per GST rules. Discounted prices already contain proportional GST. Please ask the Chemist to refund the GST charged and inform them that if they do not refund it the invoice will be forwarded to GST council as well as to Consumer Court. more
Nov 21
PLEASE TAKE UP WITH CONSUMER FORUM.GST CAN NOT BE CHARGED OVER MRP IRRESPECTIVE OF THE FACT THAT DISCOUNT HAS BEEN GIVEN.PLEASE ALSO CHECK INVOICE FOR VALID GST NO OF RETAILER. more
Nov 21
Advent of GST has made every pricing very confusing. In the GST regime, the manufacturer of the drug/Distributor of the Drug and Seller of the drugs(medicines), all has to collect GST and remit to the authorities concerned as per their ( Central & State) share. The Centre and State gets enriched imposition of GST. It was told that hereinafter, Manufacturers would include GST in their MRP but so far, none are following; on the contrary most of the medicines with pre-GST price which included many other taxes still continues to sell at the earlier price only. Therefore, everyone except the Buyer now makes hefty profits as they have stuck to their earlier all inclusive price and for GST they collect it from the buyers. Discounts too vary i.e ranges from 10% to 20% as MRP is not a fixed price; they deduct from the MRP after discount and collect the tax from buyers. There is a funny provision also that if you are in possession of GSTIN then this tax element would be covered but all the buyers are not in trade and commerce which would compel them to apply for GSTIN, as you would require Trade Licence etc. So, it is a vicious cycle where each one would point to the others. Yes, the proponents would bask in glory for different reasons i.e causing pain to buyers and et all. more
Nov 21
