A company is purchasing a packaged food item from the canteen vendor at the MRP for supplying to its employees.
Can a vendor charge GST from the company on this amount?
I know MRP already is inclusive of all the taxes but want to explore the rules and laws around it.
MRP is the maximum price that are inclusive of all taxes (including GST) which can be charged to the customer.
If the food item is pre-packaged and labeled, and the vendor is selling it at MRP, GST is already included in that price.
So, if the vendor is selling at MRP, no additional GST can be charged from the company.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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