MRP includes GST, consumers must not pay any additional charges: MoS Finance Pankaj Singh in Lok Sabha
Responding to a question in the Lok Sabha raised by a Member of Parliament whether various retail traders are overcharging the customers and are remitting lesser Goods and Services Tax (GST) to the Government by presenting inflated bills after charging GST over MRP, the minister stated that no specific case of such type has come to the notice of any Central Tax formation.
Minister of State in the Ministry of Finance Pankaj Singh categorically stated in the Parliament on Monday that maximum retail price (MRP) of products includes Goods and Services Tax (GST), and consumers must not pay any additional charges for it.
Responding to a question in the Lok Sabha raised by a Member of Parliament whether "various retail traders are overcharging the customers and are remitting lesser Goods and Services Tax (GST) to the Government by presenting inflated bills after charging GST over MRP", the minister stated that "no specific case of such type has come to the notice of any Central Tax formation."
Apart from the above, the other queries pertained to whether the Government has also received information of the elements cheating the customers in the name of GST, whether this malpractice is prevailing in various parts of the country owing to the connivance of officers and cheating traders; and if any details regarding the same were available with the Government.
To all these questions, Singh's precise response was "no specific case of such type has come to the notice of any Central Tax formation."
The reply further stated, "Therefore, maximum retail price (MRP) of a pre-packaged commodity under the said rules is inclusive of all applicable taxes including GST. Department of Consumer Affairs has vide letter dated 23.12.2019 advised the Controllers of Legal Metrology of all States/UTs to direct the field staff to ensure the compliance of provisions of the rules."
To a supplementary question regarding "the steps taken or proposed to be taken by the Government after consultation with various state Governments to address the issue and enforce proper vigilance to check such malpractice", the Minister responded that the Rule 6 of the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended) provides that: “Declarations to be made on every package. - (1) Every package shall bear thereon or on label securely affixed thereto, a definite, plain and conspicuous declaration made in accordance with the provisions of this chapter as, to- the retail sale price of the package shall clearly indicate that it is the maximum retail price inclusive of all taxes and the price in rupees and paise be rounded off to the nearest rupee or 50 paise."
These questions pertaining to “overcharging of customers by traders" were raised in the Lok Sabha by Member of Parliament Ramdas C. Tadas.
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