Composition scheme on sale of MRP products

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....omposition scheme on sale of MRP products<br> Query (Issue) Started By: - adi sankar Dated:- 17-3-2025 Last Reply Date:- 20-3-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear Sir/Mam, My query is when a medical shop owner who is registered under composition scheme is selling medicines (all are B2Cs only), then whether a) He can charge MRP straight away and pay 1% GST on such MRP....

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.... or; b) reduce the deemed taxes from MRP and then pay 1% GST on the net amount which is arrived after reducing the deemed taxes. This is because as MRP products are deemed to be inclusive of taxes and a composition dealer is not eligible to collect taxes. Reply By Sadanand Bulbule: The Reply: As a composition trader, you need to pay !% tax out of your pocket on the value of supply of goods, ir....

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....respective of MRP concept, subject to the threshold limit prescribed. Reply By KASTURI SETHI: The Reply: Sh.Sadanand Bulbule Ji, Sir, I agree with you. In this situation, MRP is foundation (it being landed cost) for transaction value of the product to be charged by a Composition Dealer. A composition dealer can purchase the goods only from registered dealer and thus he pays GST to his supplier....

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..... He (Composition dealer) does not charge any tax from his buyer. Thus the component of GST included in MRP is borne by the composition dealer itself and not by his buyer. Reply By Sadanand Bulbule: The Reply: Dear Sirji Thank you so much for your validation in clear terms. Reply By adi sankar: The Reply: Dear Sirs, Thanks a lot for your valuable replies. So what I have understood is that t....

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....he composition dealer can charge MRP on the buyer and pay 1% GST on such MRP out-of-pocket. Am I right sir?<br> Discussion Forum - Knowledge Sharing ....