MRP & Abatement in GST billing

[venkat eswaran]

Dear all,

Our mfg products paints & thinner is MRP based item and we pay Excise duty after abatement in MRP rate.

What will happen to this in GST billing. how we can show and on what basis we have to pay Excise (GST ) from 1.7.17?

Kindly share your views on this

thanks and advance

Venkat

[MADAN RAHEJA]

There is no provision under GST law akin to Section 4A of Central Excise Rules. Accordingly MRP based assessment is not there under GST. It has to be paid on transaction value in terms of Section 15 of CGST Act read with Valuation Rules.

AI Summary

Transaction value governs GST valuation; MRP-based assessment and abatement do not apply, tax charged on transaction value.
There is no MRP-based abatement mechanism under GST; valuation must be based on the transaction value and applicable valuation rules, so MRP-priced goods must be billed and GST computed on the transaction value determined under the GST valuation framework rather than by applying Central Excise abatement practices.