New MRP should consider input tax credit under GST: Government

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)".

--IANS

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