MRP includes GST too: Minister of State for Finance advises Customers to not Pay any Additional Charges

Minister of State for Finance reaffirms that MRP includes Goods and Services Tax in response to a query raised at Lok Sabha
Maximum Retail Price - GST - Minister of State for Finance - Additional Charges - Customers - Ministry of Finance - TAXSCAN

Minister of State in the Ministry of Finance, Pankaj Singh, affirmed in Parliament on Monday that the Maximum Retail Price (MRP) of products incorporates the Goods and Services Tax (GST), and consumers should not be subjected to any additional charges for it.

In response to a query in the Lok Sabha raised by Member of Parliament Ramdas C. Tadas, questioning whether various retail traders are overcharging customers and manipulating GST payments to the Government through inflated bills, Minister Singh clarified that no specific instances of such practices have been observed by any Central Tax formation.

Beyond this, additional inquiries were made about the Government receiving information on entities deceiving customers under the guise of GST, the prevalence of such malpractices across different regions due to collusion between officials and dishonest traders, and whether the Government possessed any details on the matter.

To all these questions, Singh provided a concise response, stating that no specific cases of such practices have come to the attention of any Central Tax formation.

Expanding on the clarification, the reply emphasized, “Hence, the Maximum Retail Price (MRP) of a pre-packaged commodity under the specified rules encompasses all applicable taxes, including GST. The Department of Consumer Affairs, through a letter dated 23.12.2019, has advised the Controllers of Legal Metrology of all States/UTs to instruct field staff to ensure compliance with the provisions of the rules.”

Regarding a supplementary question on the steps taken or proposed by the Government, in consultation with various state governments, to address the issue and enhance vigilance against such malpractices, the Minister pointed to Rule 6 of the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended). The rule mandates that every package must prominently declare the retail sale price, making it clear that it is the maximum retail price inclusive of all taxes.

These concerns related to the “overcharging of customers by traders” were raised by Member of Parliament Ramdas C. Tadas in the Lok Sabha.

In conclusion, Minister of State Pankaj Singh’s clear assertion in Parliament underscores that the Maximum Retail Price (MRP) of products inherently includes the Goods and Services Tax (GST), absolving consumers from any additional charges. The response to queries raised by Member of Parliament Ramdas C. Tadas emphasized the absence of specific instances of traders overcharging and manipulating GST payments.

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