GST: Despite inspection by govt teams retailers continues to charge tax on MRP

NEW DELHI: On July 10, Indiatoday.in reported, citing a LocalCircles survey, that over 51 per cent consumers complained about illegal levy of the Goods and Services Tax by retailers over and above the maximum retail price (MRP).

Sources have now told Indiatoday.in that following the report, the Department of Consumer Affairs of the Union government sent its teams for inspection at various places across the country to check if the retailers were actually charging GST over and above the MRP.

The government teams found the complaints to be true, the sources said. In most cases, the government teams warned the retailers against indulging in fraudulent practice by charging GST illegally. However, it is not yet clear, if the inspection teams penalised any of the retailers for illegally charging GST from consumers.

THE IMPACT

The inspections were carried out by officials of the Legal Metrology Division of the Consumer Affairs Ministry in association with the State Legal Metrology in respective states. The Legal Metrology Division deals with regulation of trade in packaged commodities.

Following the inspection, the retailers, where government teams visited, corrected their billing system and issued corrected bills. However, in some cases, the new bills had increased MRP.