Retailers accused of levying GST over MRP

Source:     Feb 19, 2018

Consumers have been left in distress as a result of retailers charging Goods and Services Tax (GST) over and above the maximum retail price (MRP) of a commodity.

As per a survey conducted by LocalCircles, consumers stated that many e-commerce sites, store retailers and traders have been charging GST on discounted MRP. For example, if a product worth Rs 2,000 is sold at Rs 1,000, a GST is levied on it, and sold at Rs. 1,180, thus providing a discount of 41 percent, as against the 50 percent rate promised.

The survey also revealed that many retailers are advertising discounts of a certain percentage to the MRP, which is always inclusive of all taxes and when billings are done, GST is levied on top of the discounted price.

In this regard, consumers urged the involvement of the Department of Consumer Affairs’ Legal Metrology Division to ensure that this practice by e-commerce sites and retail stores is put to an end.