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Beware of Additional GST on MRP and Discounted MRP Levied by Unethical Retailers

Beware of Additional GST on MRP and Discounted MRP Levied by Unethical Retailers

GST stands for Goods and Services Tax, and it is a combination of state, and Central taxes levied on goods and services. Some retailers are levying GST on MRP or discounted MRP as an unethical business practice. The Consumer Protection Council and NCDRC both have confirmed that a retailer is doing something illegal, but he or she can be sued only when a customer files an official complaint.

What Every Customer Must Know about GST on MRP or GST on Discount

If you are buying products and services in India, you should know that though you have a right to pay less than the maximum retail price or MRP when the product is on discount or by using your bargaining skills, you must never pay the price higher than the MRP.

People who want to avoid making a mistake in this regard should have a look at cash memos served to consumers in which the customers were asked to pay more than the MRP.

What does the Law Say

According to the Consumer Protection Council, retailers are not allowed to levy additional GST after they have offered a discount on MRP. According to NCDRC (National Consumer Disputes Redressal Commission), a seller can’t charge any other type of tax/duty on goods that are sold at a discounted rate.

The Loophole

While the consumer courts and many people in public are aware of the unethical practices by retailers wherein they charge an amount higher than the MRP from the customers in the name of GST, there is a loophole that prevents them from taking action against the offender. The loophole is that no action can be taken unless the complaint is filed by a victim of this unethical practice.

How to Fix this Loophole

This loophole must be rectified by revising the law and allowing anyone to file the complaint against the offender because unfortunately, just 1 percent of the consumers go to the court in such matters. The administrative and judicial bodies must start banning the offenders

What Should You Do?

If any unethical retailer has also levied any tax/duty like GST in addition to the MRP after offering a discount or even without a discount then you should contact Consumer Voice. We will help you in the best possible manner and protect your rights as a consumer. To register a complaint or just talk about such an incident call consumer voice on 011-47331000 or drop an email on


Divya Patwal


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