New MRP Rules Released under GST

By Registrationwala

12th August 2017

 

New MRP rules is creating bit of confusion between traders and manufacturers. The rates have not been communicated amongst the consumers. Things are not much clear  about the effect of GST on the MRP on different products. Some products rates are hiking while some products have gone down and it should be articulated to customers.

Strict instructions have been given vendors as per released government regulations; therefore businessmen are required to put revised prices with original price tag since sudden change is not possible likewise. In case the vendor fails to do so, legal action can be taken against them. Maximum Retail price often known as MRP is the maximum price of the product that can be sold to the customer and it is inclusive of all taxes.

According to the guidelines of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 given by Department of Consumer Affairs. Price Includes  local or otherwise, freight, commission payable to dealers, transport charges and all charges towards advertisement, delivery, packing forwarding. Most probably selling at above the MRP is prohibited and it a rule that is rarely followed in India.

Department of Consumer Affairs Secretary has given a declaration that in case price of a product has increases the manufacturer or packer or importer will have to give an advertisement in two newspapers about the new MRP. Things need to be communicated amongst the consumers they should be aware of the impact of GST. It is mandatory to put sticker on the product with the old price.  Packaged products are quite expensive and traders and stocks can exist up to September by putting MRP stickers have three-month dispensation period. In some products there are some difference that will be printed according to the extent and increase in tax.

 

 

New MRP Rules Released under GST

2017-08-12