GST NOT to be Levied on MRP- Government’s Stern Stand

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GST (Goods and Services Tax) is the most revolutionary and robust tax regime that has affected traders, manufacturers, and customers alike. It is due to the confusion and chaos created by GST, the government has to intervene time after time for spreading awareness, clearing doubts, and eliminating concerns of business persons and traders. That’s not all while resolving queries of the corporate world, the government has also taken care of the consumers who ultimately bear the pinch!

Recently, the GST Council has given a major relief in rates on 178 products used by the common man. Our honourable Finance Minister Mr Arun Jaitley has announced to slash the GST rate on these 178 products from 28 percent to 18 percent effective from November 15, 2017, in the 23rd meeting held after the implementation of GST. Items like wires, cables, furniture, mattress, trunk, washing/cleaning products, detergents, shampoos, hair dyes, perfumes, travelling bags, seats, razor, and the like have now 18 percent GST that result in reducing their price.

However, there is a big confusion among the consumers is regarding whether or not GST is levied on MRP (Maximum Retail Price) of the product. In other words, the customers had no idea about the GST is calculating on the MRP or not, and traders may take disadvantage of this situation for profiteering. It is now cleared by the government, along with an instruction for the consumer to remain vigilant about the calculation of GST in the invoice.

Before knowing the government’s stand, let’s know what is MRP (Maximum Retail Price)?
A product’s MRP is the maximum price (as the name suggests) that can be taken from the customer. Technically, no tax or cess or any other charge is above MRP. In layman’s terms, no trader can ask for more price than MRP.

In the same manner, GST or Goods and Services Tax is also included in the MRP of any product. The government has cleared its stand in a statement given on the microblogging site Twitter, which reads: “ Be a smart and vigilant consumer! Don’t pay more than MRP. MRP is inclusive of GST.” This statement is given on the government’s Twitter account @askGST_GOI, a helpline established by the CBEC (Central Board of Excise and Customs) for addressing various GST-related queries.

The Government has also taken steps to keep customers away from any unfair practices:

1. Toll-free helpline- 1800-11-4000/14404- a toll-free number is given for recording complaints regarding unfair billing over MRP. The government has shared this helpline along with mentioning that- “If you are charged unfairly over the MRP, then lodge a complaint on toll-free no. 1800-11-4000/14404.”

2. GST helplines- For ensuring a seamless transition from traditional to new indirect tax framework, the government has opened many communication lines that deal with GST-related queries. Some of them are:

GST Help Desk- 
Email addresses:
This email address is being protected from spambots. You need JavaScript enabled to view it.
This email address is being protected from spambots. You need JavaScript enabled to view it.

Telephone numbers: 
Toll-free- 1800 1200 232
0120 4888999

Twitter handles:
@askGST_GOI, @askGSTech

Let’s contribute in simplifying GST through spreading awareness about the ‘One Nation, One Tax’ approach.

Munimji, Ahmedabad’s premium business accountancy training institute, is ready to resolve the GST queries of corporates and traders. Stay connected with us through Munimji app and get every information in a real-time.

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