Sales on MRP pharmacy composite dealer

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For composite scheme pharmacy dealers registered for GST, the tax is applied to the selling price of medicines, not the MRP. You must pay 1% GST on the actual sale value, which already includes the tax. Importantly, you cannot charge this 1% from customers or claim Input Tax Credit on your purchases.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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05 September 2021 Sir,
A gst registered composite scheme pharmacy store business dealer purchase of medicines different tax rates (12 or 18 or 5 percent) goods.but sales of medicines value applicable on normal rate or MRP rate in gst act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 September 2021 MRP rate applicable as GST is included in MRP.

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)
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06 September 2021 The Value at which you are selling the medicines. You have to pay tax @ 1% on the price that you are selling the medicines and you are not allowed to collect that 1% tax from your customers.