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MRP on Composition Scheme

1238 views 7 replies

c4commerce

partner

25 Points Joined May 2012

A medical shop registared under composition scheme, can sale at MRP?

Replies (7)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

yes u can

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

Yes......

c4commerce

partner

25 Points Joined May 2012

then what is the difference between regular dealer and composition dealer, composition dealer also collecting tax on margin and paying 1% of turnover?

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

If MRP products then no more different and they can sell it for the MRP value...

But,
Regular dealer can use the purchase tax as ITC...

Amlani Keval

16 Points Joined September 2017

no no sir not at all you can not collect tax from your customers. under composition scheme you should pay tax 1 %of your output and cant take set-off benefits as you can not collect tax

Sreejith Medicals

2 Points Joined May 2018

As per the scheme tax is not permitted to collect. Is it possible to collect inclusive tax on MRP..?

Srinivas Kotnala

Accounts Manager

95 Points Joined November 2013

As per the GST Composition Scheme Rules & Proviso,

One Can not collect the Extra Tax or GST from the Customer or the Consumer. and he can not take the Input Credit on Purchases as well.

How Ever the Same is not appplicable for MRP Products. If a Super Market Registered Under Composition Scheme and Collecting MRP Price on products is a Valid Practice and its not against the Composition Schemes Priviso.

The Supplier or the Super Market in the Last Example Has to Pay the Tax @ 1% on the Turnover (i.e MRP ) GST of 1 % is an Additional Tax Payable to Goverment.

Yes Its a Double taxation Issue. But 1 % on Total Purchases is a Nominal Amount compared to Normal Tax Rates. Hence Govt Silent about this Cascading Effect.