Should MRP exclude GST
MRP is great farce. It works against the interest of people whom it intended to support. Companies take undue advantage of freedom to put MRP. In my view, MRP should be excluding GST and retailers should be allowed to put GST over MRP only if bills/receipts given !! What do you say. more
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MRP means Maximum Retail Price i.e. nothing beyond this amount is required to be paid and customer be asked to pay. It is all inclusive and nothing over and above this must be payable. more
Dec 31
It won't help in any way. On the contrary, the consumers will become preys of the retailers like pre-MRP regime. Hence, the suggestion is neither workable nor acceptable. The need is to ensure strict compliance of MRP rules by all concerned. more
Dec 10
I work on the principal of 'Other things being equal' for success of any scheme. Based on this, if I could achieve 75%-85% success in implementation the scheme. But the man by nature being greedy, any scheme in the lap of a businessman is bound to be made unsuccessful just because the trade wants to earn extra money. more
Dec 12
You may or may not agree but the fact remains is that MRP excluding GST leaving the responsibility of GST collection on the retailers will only encourage them to promote their business by offering reduced prices without taxes and bills/receipts. With indian mindset, majority of us will happily gulp the bait for the sake of saving a few bucks without having any guilty feeling for not paying the tax. As far as black money is concerned, this will become another element to generate black money out of the sales effected without bills.
Coming to the VAT regime, I can only say that it was not 100% workable and I myself had come across on different occasions when the retailers offered concession of the VAT amount provided a bill is not demanded for.
Looking to these aspects, I reaffirm that MRP should include all kind of applicable taxes. more
Coming to the VAT regime, I can only say that it was not 100% workable and I myself had come across on different occasions when the retailers offered concession of the VAT amount provided a bill is not demanded for.
Looking to these aspects, I reaffirm that MRP should include all kind of applicable taxes. more
Dec 11
No. I do not agree. The scheme of MRP with VAT system of 'set off' is very much workable. Only the business community among us does not want to get it implemented as it will take away the element of accountability and black money income from the transactions. The Govt of India in the Finance Ministry has got to understand this. more
Dec 10
MRP inclusive of all taxes i.e. GST/CGST at all stages of distribution is acceptable, provided at every stage the dealer-retailer give the benefit of "set off" value as provided in the VAT scheme and adopted by the Haryana State, tax on sales to be charged on the difference between sales price and purchase price of the dealer/retailer. But the problem is that the Govt of India has not prescribed the format of the cash memo despite repeated request, on the ground implementation process has to be followed by the States alone which is wrong. Why, because there can be different rate of GST by the States but the procedure has got to be the same throughout the country - confirming the federating democratic culture. This is possible only if the Govt of India prescribes the same procedure for collection of the GST for all the States. Further, despite the fact that MRP remains inclusive of all taxes, but do not forget it is the right of consumers to know what taxes (GST/CGST) is being charged and at what price while the total remaining within the MRP. But it does not mean that the retailer will charge the tax at the prescribed rate on the "MRP" and deduct the same value from MRP to show the value of the tax collected - shown without giving the benefit of "set off" value. However, I would also support a debate on the issue of "inclusion" or "exclusion" of the taxes on sales in the MRP as the implementation process in the present scenario has become questionable. more
Dec 07
Excluding GST from MRP will be a BLUNDER...It will benefit to seller only. 1) There are different rate of GST applicable on different products, however, seller will charge maximum GST only. 2) Most of the daily needs are purchased by common but maximum population of citizens from outlets , do not make any CASH RECEIPT & if GST is excluded, they will charge maximum GST & PUT INTO POCKET. IT WILL LEAD TO DOUBLE BENIFIT TO SELLERS ONLY & SUFFERER WILL BE COMMON PUBLIC. Instead it is suggested , Govt to Charge GST DIRECTORY FROM MANUFACTURERS / PRODUCERS considering MRP. It will help not only Govt on GST but also to common public since to avoid payment OF GST OVER INFLATED MRP, THEY WOULD LIKE TO REDUCE MRP ITSELF. more
Dec 07
MRP (maximum retail price), as I understand, is the price of a product which is "recommended" but not stipulated by the manufacturer. It is obvious that the MRP is a sum of all costs viz. of the production, commission of the wholesale buyer/stockist, of the retailer, including applicable taxes and charges for packing, storage and transportation etc. etc. THE WHOLESALE BUYER/STOCKIST AND RETAILER HAVE GIVEN THEIR OKAY TO THE BUILT-IN COMMISSIONS FOR THEM. Now, MRP works also on the psychology of the buyer, in that he's relieved that no extra costs, such as taxes etc need to be paid additionally. He is unaware of the margins already built into the MRP for the two "in-betweens." What one needs to question here is: Who determines these charges/commissions for these "in-betweens" and are these justifiable? Some may call it farce, but this certainly needs looking into. more
Dec 06
