NOwhere GST has any linkage with MRP. Either remove MRP or restructure as below. Most of the traders are fooling GST by avoiding it in stage 2-3-4 of selling cycle( in the chain)/Also many industries have increased MRP post GST implementation. Look at the prices of medicines , white goods , fmcg , grocery etc. Suppose a Maruti spare part like bearing has an MRP of 100 and first point sp to distributor is Rs 50 plus GST ie 28% or 50 14 =64 . The distributor sells to whole seller at Rs 66 wo bill and also sells the bill at 8% of Rs 64 . He earns appx 5 and is also damaging the Genuine GST sellers. This way the trade is eating the GST post first point and cheating the govt.Govt gives gst credit for input gst incurred. Thus losing on more gst ie diff between Rs 50 and rs 100 which is end selling price to last customer. My solution is simple. Make GST forward charge to MRP and at each billing point give the credit back to GST account holder ( is each stage seller). ie Charge GST of 28% on MRP of 100 ie 100/1.28 on Rs 50 and so on. Once extra GST is accrued to Govt the job is only to offer credit at each point. Now there wont be any chori of GST , no chance of black money and no cheating on MRP by manufacturers. I have been making pricing and taxation policies for my Group companies for more than 22 years now. Jai Hind
