GST Should Be Included in MRP – GST Council Will Announce New Law
With a lot of confusion over GST, some businesses have been taking advantage of this confusion & over-charging consumers.
Goods and Services Tax (GST) is the biggest tax reform ever experienced by India, post-independence.
Due to unexplained rules and in the absence of proven tax laws, GST is being increasingly ‘abused’ by businesses, wherein they are charging more than MRP under the guise and excuse of GST.
However, this won’t be tolerated anymore, as a new law will be soon announced stopping this.
Meanwhile, in a related news, restaurant owners and hoteliers are still not happy with the Govt., despite lowering tax slabs.
What is the reason?
Charging More Than MRP? Please Stop!
A high-profile group of state finance ministers, which was headed by Assam Finance Minister Himanta Biswa Sarma, has recommended a strict rule, forbidding any business to charge more than the MRP from the customer.
As per the recommendations made, every business would be required by law to include GST in the MRP, for every product or service.
Actually, under Consumer Protection Laws, MRP is the maximum cost which any business can charge. But after implementation of Goods & Services Tax, some businesses have been charging GST above the MRP.
In fact, as per a recent survey, whooping 77% of customers paid Goods & Services Tax on MRP, as they are being forced to pay double taxes.
This would be stopped now, once the new rules concerning GST and MRP is executed.
GST Council, which is being headed by Finance Minister Arun Jaitley will soon meet, and approve this recommendation to protect consumer interests.
Interestingly, Govt. has already made it clear that MRP should include all taxes, especially under GST. Making it a rule will help to implement the same as well, and protect consumers from double-taxation.
Besides this, the pane has also suggested the following changes:
- Extend quarterly filing of returns for every tax-payer. Only those businesses which have turnover of Rs 1.5 crore or more are allowed to file taxes quarterly.
- Sash tax-rate to 1% for manufacturing units and restaurants
- Remove the distinction between AC and non-AC restaurants
Restaurant Owners Upset With Govt. Over GST
Govt. has already lowered GST for restaurants from 18% to 12%, however, restaurant owners are still upset with the Govt.
Because along with this benefit, Govt. has also decided to withdraw input tax credit facility, and as per the hoteliers, and food business owners, this will lead to price increase.
National Restaurant Association of India (NRAI) has made it clear that due to withdrawal of input tax credit, the price of items served can increase by 6-8%.
GST Council is meeting on November 10th, and some concrete decisions would be taken soon.
We will keep you updated.