Govt says new MRP should consider input tax credit under GST

The government on Saturday said the new MRP on products manufactured, packed or imported before July 1 should take into consideration extra availability of input tax credit under GST.

"The declaration of new MRP on unsold stock manufactured, packed, imported prior to July 1 should not be done mechanically but after factoring in and taking into consideration extra availability of input tax credit under GST (including deemed credit available to traders)," said a clarification issued jointly by the Departments of Revenue and Consumer Affairs.

The Aclarification is in relation with the recent circular, where it said "the phrase `the increased amount of tax due to GST, if any` means the effective increase in the tax liability calculated after taking into consideration extra availability of input tax credit under GST (including deemed credit available to the traders under CGST)".