againt GST

[Dr Sundar]

GST is already included in the MRP, right? This has to be illegal?

I wonder how the buyer had not questioned it? I only assume the buyer was not illiterate

KPN Fresh Hyderabad has to be pulled up

namasksar

"KNOW THYSELF .

SELF KNOWLEDGE IS REAL KNOWLEDGE.

ALL OTHER KNOWLEDGE IS IGNORANCE AND THEY ARE NO  KNOWLEDGE  "   

~~~ Bhagavan Ramana

     

[Rajaram Krishnamurthy]

Yes, in India, the Maximum Retail Price (MRP) is always inclusive of all taxes, including GST. 

Retailers and sellers cannot charge any amount over and above the printed MRP on a packaged product. Charging extra GST on top of the MRP is illegal and a violation of consumer rights. 

The MRP is calculated by the manufacturer and covers all costs, including manufacturing, transportation, marketing, profit margins, and all applicable taxes. 

Key Points to Remember

• MRP is the final price: The price printed on the package is the maximum you can be charged.
• No extra charges: A seller cannot add separate "cooling charges" or "service charges" over the MRP either.
• Sellers can charge less: Retailers are free to sell a product at a price below the MRP, often offering discounts.
• Your consumer rights: If a seller charges more than the MRP, you can refuse to pay the excess amount and file a complaint with the National Consumer Helpline (NCH) or the Legal Metrology Department. 

HOWEVER THERE IS A HITCH. IF SOLD IN MRP WHOLLY NO FURTHER GST; BUT SALE PRICE IS BELOW PAR SO GST PORTION MAY NOT BE THERE; SO LEVIED. KR IRS 71125

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[R V Rao]

MRP of any product should not be sold more than printed.

We don't know on what basis this .M R P is fixed and what basis.

In most cases MRP rates are hyped and traders are making money.

One example; Some pharma dealers are giving discounts upto 20%.Does this not indicate that the mechanism in fixing is faulty.

In the case mentioned by you the seller is not at fault. It is for the buyer to point out that the tax has come down. Dealer is legally correct.

Buy selling Goods at MRP gives the dealers more profit. Govt should study the mechanism and take care of consumers.

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[Dr Sundar]

Dear sir 

Legally, the shop is correct as u say . A dealer can sell any packaged item at or below the printed MRP — never above it. If the tax on the item has been reduced after the MRP was printed, the seller is not at fault unless a new MRP has been notified or relabeled.

However, your observation about the MRP system is right. The way MRPs are fixed lacks transparency, and many are inflated to allow large profit margins and discounts. That’s why even after giving 15–20% off, sellers still earn well. The government should definitely review the mechanism to make it fairer and more consumer-friendly.

But where is the Govt attending to all these kind of issues like the way they are focussed when an election  is on the anvil.

 Namaskara

[Rajaram Krishnamurthy]

       Dr Sunder and Mr. Rao, I cannot understand as to, HOW YOU UNDERSTAND AND UNDERESTIMATE A REGULATION AND CONFOUND IT AS UNSCIENTIFIC ON HESHYAMS. Previously Dhal from Gujarat was sold at wreck less price as fixed by the greedy chamber of association and were sucking the blood of the consumer. After cost of production by a manufacturer stops at the gate where central exercise issues the gate pass; later product was hand changed from A to Z increasing the profit making it skyrocketing; then the cost of purchase by the seller at any point of sale, is added by varied transport charges and taxes of the crossing states, local taxes so on so forth where that seller adds the profit; thus the sale price varied from many point of sale of the nation, hence GST was fixed with below demarcations only. So, intermediaries were removed. Transport cost was averaged making the leeway a bit wider subject to the distance of the point of sale. Hence maximum price was fixed; since cost of sale can be really MRP at a place while it could be the least nearby; hence minimum can be made feasible; if your trader gave a discount from MRP and you accepted it as an happier person, then you are an illiterate. Also gst factor is a misnomer when sale price is reduced at any point of sale drastically, hence fresh GST is levied as original GST is off the component. Additional tax cannot be levied on 100%MRP; but where SP is just 75% MRP is not adopted hence further levy; it is not twice taxed as held in various courts. NO ONE INCLUDING THE GOVT IS AT FAULT. TRADERS ARE expected to sell only at mrp but traders use it as bait to customer so you pay some more. K RAJARAM IRS 71125

 

Factors Influencing MRP Fixation

Manufacturers consider several factors when fixing the MRP:

Cost of Production: All direct and indirect costs, including raw materials, labor, and overheads.

Packaging and Transport Costs: Expenses related to packaging and logistics to get the product to various markets.

Profit Margins: Desired margins for the manufacturer, distributors, wholesalers, and retailers.

Market Dynamics: Demand for the product, prices of competing products, and the target consumer's purchasing power.

Government Regulations: Adherence to laws, tax structures (like GST), and specific price controls for essential goods (e.g., certain medicines).

Regulations and Enforcement

Legal Metrology Act, 2009: This Act mandates the prominent display of the MRP on all packaged commodities intended for retail sale.

Penalties: Violators found charging more than the MRP can face fines or imprisonment. Consumers can file complaints with the relevant authorities (e.g., the local legal metrology department or consumer forums) in cases of overcharging.

GST Impact: After the implementation of GST, manufacturers were required to revise MRPs and, if prices increased, advertise the changes in newspapers for a transitional period to inform consumers and prevent malpractice.

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