GST on discounted price(discount on product is more than 19%)
If GST is allowed to be charged on MRP if the discount on the product is more than 19%. I am regularly shopping online and this is reply I got when I raised query. It would be helpful if we have more information on this? more
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Dear Sri Sonal, While I don't claim correctness of my say, I am only putting forward my most rational analysis. I assume that the product is stamped with Post GST MRP, which, to the best of my understanding is inclusive of CGST & SGST. I also assume that the dealer has offered you discount on basic price of the article. If that is the case, then discounted price is 81% of the price and the tax is 81% of the tax otherwise payable. This, if simplified, means that the dealer parts with the article upon payment of 81% of the written down MRP. This is the most rational method but there can be another view from the point of view of Revenue that the Dealer has no competence to offer discount on GST payable. Thus you end up paying 81% of basic price and 100% of GST, which will be more than earlier amount. While the rationality of this is disputable on the ground that there can be revenue by way of GST if and only if the product is sold and thus it is dependent upon what basic price it is sold at. The price marked is `Maximum Retail Price' and not `Minimum' repeat `Not minimum' retail price. The revenue point of view holds true if it were to be minimum retail price. This is a debatable proposition and may one day land in courts. more
Jul 18
Dear Sri Maheswari,
I fail to understand the relationship between the resource and your comment. Irrespective of whether fraud is happening or not, my remarks or analysis is with reference to the specific issue raised in the resource. If you genuinely feel that you are being defrauded by some unit, whether online or offline, raise specific issue with GST office at your location or nearby and avoid dealing with that unit in future. After all, once bitten, twice shy. more
I fail to understand the relationship between the resource and your comment. Irrespective of whether fraud is happening or not, my remarks or analysis is with reference to the specific issue raised in the resource. If you genuinely feel that you are being defrauded by some unit, whether online or offline, raise specific issue with GST office at your location or nearby and avoid dealing with that unit in future. After all, once bitten, twice shy. more
Jul 19
GST is included in MRP
What is the rationale about - GST is chargeable if discount is above 19%?
There is no checks & fraud is happening at large by few online retailers like Myntra & Jabong, whereas Flipkart & Amazon do not charge extra GST. more
What is the rationale about - GST is chargeable if discount is above 19%?
There is no checks & fraud is happening at large by few online retailers like Myntra & Jabong, whereas Flipkart & Amazon do not charge extra GST. more
Jul 18
These merchants are simply cheating customers... When they sell at MRP, GST is included in the price but when they sell the products they try to make fool of customers by charging GST on discounted price thereby lowering the actual discount, whereas if they are selling at say 50% discount they need to discount the product at 50% of retail price exclusive of GST and then charge GST on discounted price as this would result in parity. This is true for both online and retail stores. Better to shop from reputed sites like Amazon and Flipkart who do not indulge in such malpractices, on other hand companies like Myntra and Jabong (both owned by Flipkart), and Shoppers Stop charge GST on discounted prices (discount based on MRP (not on retail price exclusive of GST). more
Jul 18
