GST above mrp
Easy. A footwear with m.r.p. Of Rs. 3000/- was sold as 50% discount. I.e Rs. 1500.Now on this Rs. 1500/-, they charge g.s.t @ 28% I.e Rs. 420/-. Totalling Rs. 1920/-,which is less than m.r.p. Of Rs. 3000/-. Had the shoes been sold at m.r.p. Of Rs. 3000/-,then no g.s.t. But since it is on 50% discount, on Rs. 1500/-,the company charges g.s.t. Whether the government can clarify whether this g.s.t. Is chargeable? more
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If I recollect right, Mr S.K. Virmani had followed up on the query raised by Mr Sangani and he had found out that it was wrong to charge GST on reduced prices. Maybe, Mr Virmani can repeat his note on the subject........I think this was about half a year ago! Alternatively, Mr Sangani can read Mr Virmani's earlier postings in this Circle by clicking on "Show me: All posts......" and select the suitable "line". more
Aug 13
These are all business tricks to fool the Customers. They dare to do so as there is no Government to look after it. more
Aug 13
MRP is inclusive of GST, so whenever a discount is offered it is on MRP, hence it is illegal to charge the GST. more
Aug 13
just purchased a Puma shoe for RS 1998/- price displayed after discount)( inclusive of GST 18%) at discount the MRP was Rs 5000/-, so i do not have a issue an yes it answers your query, Go for a proper vendor always more
Aug 13
Dear Hasmukh & Members, My understanding of GST with respect to MRP on products is stated below; [1] Selling price(all cost and profit included)+GST makes MRP. Accordingly, with 3000 MRP the company has already committed to a GST of Rs.656.25 (at 28%), Rs.567.63 (at 18%). The Seller must recover this GST amount from the buyer. In case Seller has not recovered this amount the loss will be to Seller. [2] At 50% discount what Seller can do. (A) One is normal practice followed by the common Sellers is charge at applicable GST rate on 50% of MRP and adjust in the books, if appropriately understood. Loss due to lower collection of GST is diverted to manufacturer, if possible. The Government will not bother of practices because GST collection is unaffected, as far as Government is concerned. (B) As a fair practice, the Seller can work out the real Selling price from MRP by dividing it with 1.28 (at GST rate of 28%) or by 1.18 (at GST rate of 18%) and extend 50% discount over that, and, thereafter, add the GST amount as was included in MRP. Ultimately, the discount in the hands of buyer will be about 36% at 28% GST. Considering all the intricacies of arithmatic calculations, what I have been conveying that MRP principle is non-transparent and generally it includes very high unexpected margins giving rise to corrupt practices in the business game. Manufacturers should indicate its selling price only. The Selling Channel shall add its margin and applicable GST at each step upto the point of ultimate Seller making the process more transparent. In order to sell the products all the parties will exert sensible approach and undue profit making will end. I hope that ultimately the Consumer will get a product at most optimised cost and on the other hand all associated parties in the whole business will realise their responsibility towards the tax regime. more
Aug 13
