MRP includes GST, consumers should not pay any additional charges: MoS Finance in Lok Sabha

In Parliament on Monday, Pankaj Singh, the Minister of State in the Ministry of Finance, clearly declared that Goods and Services Tax (GST) is included in the maximum retail price (MRP) of goods and that customers are not required to pay any additional taxes.

“No specific case of such type has come to the notice of any Central Tax formation,” the minister said in response to a question posed by a member of parliament in the Lok Sabha regarding “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.”

In addition to the previously stated, other questions concerned whether the government had also been informed of individuals defrauding customers under the guise of GST, whether this practice is widespread throughout the nation due to the cooperation of officials and dishonest traders, and whether the government had any information on the subject.

Singh accurately responded to each of these queries by saying, “No specific case of such type has come to the notice of any Central Tax formation.”

The reply continued, “Therefore, under the aforementioned laws, the maximum retail price (MRP) of a pre-packaged commodity is inclusive of all applicable taxes, including GST. In a letter dated December 23, 2019, the Department of Consumer Affairs instructed all State and Territory Controllers of Legal Metrology to instruct field employees to make sure that the laws’ provisions are followed.”

The Minister answered a follow-up inquiry about “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”.

According to Rule 6 of the Legal Metrology (Packaged Commodities) Rules, 2011 (as modified), each package must have a declaration on it. (1) The retail sale price of every package shall clearly indicate that it is the maximum retail price inclusive of all taxes, and the price in rupees and paise shall be rounded off to the nearest rupee or 50 paise. This clear, plain, and conspicuous declaration shall be made on the package or on a label securely affixed thereto under the provisions of this chapter.