GST over MRP is illegal

WHY CHARGING GST ON MRP ILLEGAL

Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act 2006, maximum retail price (MRP) means the price above which a retailer cannot charge his consumers. The MRP already factors in all taxes levied on the product.

A manufacturer is required to mention in clear and bold print the maximum retail price on all the products. A retailer is prohibited under the law to sell at a price higher than the MRP.

In fact, the Consumer Affairs Department has led several campaigns telling consumers to bargain on the MRP as it covers good margin of profit that may range from 10-35 per cent.

There are several laws including the Monopolies and Restrictive Trade Practices Act (MRTP Act), the Essential Commodities Acts and the Consumer Protection Act which make selling a product over and above MRP a punishable offence for unfair trade practice.

Source:- India Today
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