GST - Composition

[Ethirajan Parthasarathy]

A Composition dealer sells goods at MRP which is inclusive of taxes. Does it mean he is collecting GST which is prohibited under GST Act.

AI Summary

Can Composition Dealers Sell at MRP Without Violating GST Rules? Debate on Tax Inclusion and Compliance. A discussion on a forum addresses whether a composition dealer selling goods at Maximum Retail Price (MRP), which includes taxes, is effectively collecting Goods and Services Tax (GST), which is prohibited under the GST Act. Responses indicate that MRP includes all taxes, including GST, and composition dealers should not adopt an inclusive tax concept. They should not collect GST separately but pay it on their turnover. Some argue that while MRP includes GST, composition dealers do not directly collect it, as they cannot avail Input Tax Credit (ITC) and must pay GST on their sales turnover.