Composition scheme on sale of MRP products, Goods and Services Tax - GST

[adi sankar]

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 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.

Posts / Replies

[Sadanand Bulbule]

As a composition trader, you need to pay !% tax out of your pocket on the value of supply of goods, irrespective of MRP concept, subject to the threshold limit prescribed.