MRP based item in GST

[venkat eswaran]

DEar all,

our is a MRP based valuation in Central excsie pmt after rebate of some % on MRP we paying excise duty. In GST how this is to be treated. Whether the same MRP based valuaiton is continued in GST also?

Kindly share your views on this

Thanks in advance

Venkat

[DR.MARIAPPAN GOVINDARAJAN]

This has not been dealt with by model laws.

[MANISH SINHA]

Sir,

There is no provision of MRP Valuations under GST

[YAGAY andSUN]

MRP Provisions have not be mentioned in the Model GST Law meaning that there would be not need to pay the GST on MRP printed on goods intended for sale. However, mentioning of MRP would be mandatory under LM(PC) Rules, 2011 as amended by Rules, 2015.

[Nash Industries I Pvt Ltd]

Under the GST, the valuation is based on the transaction value and the concept of MRP based valuation do not exist. However, MRP needs to be affixed to satisfy the conditions of LM Act and its Rules.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

Under GST, MRP concept is not mentioned. Tax will be on transactional value. Thanks.

AI Summary

MRP-Based Valuation Not Applicable Under GST; Transaction Value Used Instead, MRP Display Still Mandatory Under Legal Metrology Act. A query was raised regarding the treatment of MRP-based valuation under GST, as it was previously used in Central Excise with a rebate. Responses clarified that the GST framework does not include provisions for MRP-based valuation. Instead, GST is applied based on the transaction value. However, the requirement to display MRP remains mandatory under the Legal Metrology Act and its associated rules. This indicates a shift from MRP-based tax calculations to a focus on transaction values under GST.