A company buys FMCG from the manufacturers and sell it to retailers. MRP is affixed on the pack stating inclusive of all taxes. Now after implementation of GST the rate of GST forces the price of the product to be above MRP.
Q1. Whether the manufacturer has to change the MRP?
Q2. How to compensate the loss on ITC by the retailer since he can't sell above the old MRP?
first of all GST is not implemented yet hopefully from July 1 we may but till then kindly wait and follow the same as to what is being followed til date.
coming to your second question MRP is nothing but the maximum Retail Price and is inclusive of all taxes and in case just to tell in layman point Yes,if the rates of the product has higher tax under GST then MRP would be revised accordingly however it is very early to speak on the revision of the price now.
CAclubindia
