Relaxation of Legal Metrology (Packaged Commodities) Rules, 2011 for implementation of the GST [Last Date to revise MRP: 30th September, 2017]
By: – CASanjay Kumawat
Goods and Services Tax – GST
Dated:- 1-9-2017
Introduction
A maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India. However, retailers may choose to sell products for less than the MRP. MRP differs from systems using a recommended retail price because in those systems the price calculated by the manufacturer is only a recommendation, not enforceable by law.
All retail products in India must be marked with MRP. Retailers cannot charge customers over the MRP. Some retailers may charge slightly below MRP to draw more customers to their stores. In some remote areas, tourist spots, and in situations where a product is difficult to obtain, consumers are often charged illegally over the MRP.
MRP includes GST
MRP is the maximum
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fter inclusion of the increased amount of tax due to GST, if any, in addition to the existing retail sale price (MRP), for three months w.e.f. 1st July 2017 to 30th September, 2017. Manufacturers/ Packers/ Importers can declare such revised MRP on their unsold stock through stickers/ online printing/ stamping, with the following conditions:
* Difference cannot exceed the net price increase on account of incidence of tax after factoring in and taking into consideration extra availability of input tax credit under GST [including deemed credit available to traders under proviso to section 140(3) of the CGST Act,2017],
Original MRP shall continue to be displayed and the revised MRP shall not overwrite on it, and
Manufacturers or packers or importers shall make at least two advertisements in one or more newspapers in this regard and also by circulation of notices to the dealers and to the Director of Legal Metrology in the Central Government and Controllers of Legal Metrology in the S
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Importer by complying with the procedure, either the Manufacturer/ Packer/ Importer, as the case may be, or a Wholesaler/Retailer shall affix a sticker/ print/ stamp indicating the revised prices so fixed, advertised and communicated by the Manufacturer/ Packer/ Importer.
Downward revision: As per proviso to Rule 6(3) of the Legal Metrology (Packaged Commodities) Rules, 2011 reduced MRP may be declared by putting a separate revised MRP sticker, and the same shall not cover the MRP declaration made by the Manufacturer/ Packer/ Importer. Further,
* Advertisement and intimation to Legal Metrology authorities will not be mandatory in case of such downward revision,
* Either the Manufacturer/ Packer/ Importer as the case may be or a Wholesaler/ Retailer shall affix the sticker displaying reduced MRP as per the price fixed and communicated by the Manufacturer/ Packer/ Importer.
Time limit to revise the MRP
The time limit is 30th September 2017 or till the stock remains unsold, whiche
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