Double vat on discounted mrp

So I have just purchased a pair of shoes, wherein the label clearly mentions Rs.11,990 inclusive of all taxes. The store is running a flat 40% discount on all items, which is significantly displayed all around the store. Also displayed at the billing counter is a sign that says "VAT additional on discounted MRP as applicable"

On billing, the store has given me 40% discount on the MRP price as per label (remember, this is inclusive of all taxes). On this new discounted price, it has charged me an additional VAT (14.5% for shoes).

Is this not double taxation?  How are stores allowed to do this so blatantly all across the country?

Additional note - while searching online, I read there was a successful case lodged against Shoppers Stop in 2015. Interestingly, Calvin Klein (which I believe is a brand under Shoppers Stop) boldly displayed "No additional VAT on discounted price"

Replies (2)
see friend,
first of all discount is of two type one is trade and second is cash.
in case of trade discount VAT is fully on MRP then after discount is calculated inclusive of tax, but in case of trade discount discount is given to reduce ur base price after that tax is calculated after adjusting trade discount.
there is no right to seller to charge additionally VAT or other tax other than actual on MRP base and trade discount base.
further u can reach consumer court for complain.
thnks n regards
in 1st trade = cash, *mistaken replyed

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