Our concerns in Financial Express
I was forwarded by a gst expert our concern raised on gst levying over discounted price or mrp as covered in financial express. Is the Govt planning to act. Its been 6-7 months now on this matter and several members are raising the issue.
Consumers have been left in distress as a result of retailers charging Goods and Services Tax (GST) over and above the maximum retail price (MRP) of a commodity. As per a survey conducted by LocalCircles, consumers stated that many e-commerce sites, store retailers and traders have been charging GST on discounted MRP. For example, if a product worth Rs 2,000 is sold at Rs 1000, a GST is levied on it, and sold at Rs. 1,180, thus providing a discount of 41 percent, as against the 50 percent rate promised.
The survey also revealed that many retailers are advertising discounts of a certain percentage to the MRP, which is always inclusive of all taxes and when billings are done, GST is levied on top of the discounted price. In this regard, consumers urged the involvement of the Department of Consumer Affairs’ Legal Metrology Division to ensure that this practice by e-commerce sites and retail stores is put to an end.
http://www.financialexpress.com/economy/retailers-accused-of-levying-gst-over-mrp/1070384/ more
Consumers have been left in distress as a result of retailers charging Goods and Services Tax (GST) over and above the maximum retail price (MRP) of a commodity. As per a survey conducted by LocalCircles, consumers stated that many e-commerce sites, store retailers and traders have been charging GST on discounted MRP. For example, if a product worth Rs 2,000 is sold at Rs 1000, a GST is levied on it, and sold at Rs. 1,180, thus providing a discount of 41 percent, as against the 50 percent rate promised.
The survey also revealed that many retailers are advertising discounts of a certain percentage to the MRP, which is always inclusive of all taxes and when billings are done, GST is levied on top of the discounted price. In this regard, consumers urged the involvement of the Department of Consumer Affairs’ Legal Metrology Division to ensure that this practice by e-commerce sites and retail stores is put to an end.
http://www.financialexpress.com/economy/retailers-accused-of-levying-gst-over-mrp/1070384/ more
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Manufacturer or retailer had affix discount mrp on the package, then they can collect discount price GST. more
Mar 01
Sir, first of all this practice is not from 6-7 months but got initiated in 2014. However,it is rather surprising why Govt is silent on the subject despite National Commission adjudicated on the matter and the practice still continuing. Another surprising fact that I could get just 145 signature on my petition to Govt. of India after lot of persuasion. It seems the issue is important just for the few activist as I was expecting that at least 5000 people would sign the petition and will flood the office of Govt. of India with our concern. The activists could get encouraged only with the support of public and would be more than happy to take issues forward. Please sign my petition and extend your support to me on fighting against unethical business practices. more
Feb 27
Companies says MRP includes GST and then they give discount on MRP and on the discount charge GST I cant make any sense of this.. forced to buy how long can you boycott products that you want Why doesnt govt clear this; if it a rule we stick by it or is it companies making the unaware customer a fool?? more
Feb 26
These small hiccups will be there when things/ systems change and will get ironed out slowly in due course. more
Mar 08
All restaurant take GST above the price written on their menu card. GST helps them to generate more profit then earlier. more
Feb 25
MRP:Rs.1000.00 Discount 10% Taxable Price: Rs.900.00 GST 12% On Taxable price GST : Rs 108.00 Total price to Pay : Rs. 1008.00 - Which is more then MRP....... Consumer pay Rs.1008.00 to by this product. Which is more then MRP. more
Feb 25
