Medicines sales on MRP or normal rate

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This query is : Resolved

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This discussion clarifies how medicines should be sold under the GST regime. For Business-to-Consumer (B2C) sales, medicines can be sold at or below the Maximum Retail Price (MRP), as MRP is inclusive of GST. For Business-to-Business (B2B) sales, dealers can set their own pricing based on their margin, with GST applied accordingly.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

07 June 2020 One of gst registered regular sceheme dealer trade for sales of medicines.trader purchase of medicines from registered dealers ITC claimed.
Doubt:
Dealer medicines sales on MRP or normal rate applicable selling to b2b and b2c customers in gst act.

Soumitra Basu

Soumitra Basu (Expert)

09 June 2020 COULD NOT UNDERSTAND THE QUERY

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

09 June 2020 dealer medicines sales billing issued on MRP or normal rate applicable on gst tax collected.

Punit Gupta

Punit Gupta (Expert)

09 June 2020 MRP is rate inclusive of GST. So dealer can sell the medicines on or below the MRP to customers under B2C.
And for B2B sales, the dealer may again for any rate per his margin and GST is charged accordingly.

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