MP for action on retailers violating MRP rules

Report by: 
Port Blair
12 Nov 2017

The Member of Parliament, Mr Bishnu Pada Ray has demanded strict action against retailers charging GST over and above MRP (Maximum Retail Price) on packaged drinking water, cold drinks and other eatables to protect consumers, mainly tourists, from unfair trade practices. There are numerous complaints that shopkeepers in different parts of this territory charge more than Rs 50 from tourists plus GST from tourists on soft drinks, water bottles etc which is a serious violation of law, said Mr Ray speaking to EOI.
“Currently  a bottle of packaged drinking water costs Rs 10 including GST whereas consumers particularly tourists have complained that some retailers are charging the GST over and above the MRP of products. The government has made it clear that the MRP is the maximum price of a product to be sold in retail and charging anything above this is an offence. Such retailers should be fined and booked under relevant sections of the law. The administration should take necessary steps to ensure mandatory billing facility in all hotels and retail outlets,” the MP said.
“There has been a spurt of such violations reported in the past few months and tourists visiting these islands in lakhs every year are being  fleeced. Retailers are generating illegal profits by overcharging consumers on various brands of soft drinks and drinking water bottlers etc. The administration should take a strong note such violations,” added Mr Ray. 
Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act 2006, maximum retail price (MRP) means the price above which a retailer cannot charge his consumers. A manufacturer is required to mention in clear and bold print the maximum retail price on all the products. A retailer is prohibited under the law to sell at a price higher than the MRP. Even under the new tax regime, selling a product over and above MRP is a violation of the anti-profiteering clauses of the GST Act, which can lead to cancellation of registration of the retailer.