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Medicines sales on MRP or normal rate

Kollipara Sundaraiah (B.com) (2963 Points)

09 June 2020

any gst registration regular and composite dealer trading sales of medicines bills issued to b2b and b2c customers MRP or normal rate applicable on included or excluced gst tax collected.

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4 Replies

Garima gupta (41 Points)
Replied 09 June 2020

The products which are sold at MRP are always inclusive of all the taxes.i.e., gst is included in the MRP

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KRISSHNAN KP (4215 Points)
Replied 09 June 2020

Composite dealer's are not eligible to collect GST

Padmanabhan (Student) (1321 Points)
Replied 09 June 2020

When you sell MRP it is inclusive of tax.
if you sell below MRP then the total invoice value shall not exceed MRP.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 10 June 2020

Regular Dealer : Can collect tax from Customer , so the goods sold on MRP shall include GST .
Composite Dealer : Cannot collect tax from Customer, the goods can be sold on MRP but GST need to paid on MRP by supplier from his own pocket.