Hello everyone, DO U KNOW that, there will be no more MRP based valuation under GST…….!!!!!!! GST valuation provisions & rules have totally wiped out that concept. Then what is to be done, how valuation is going to be done under GST Regime. Let us learn through history of implementing the MRP based valuation & reasons for removing same in upcoming GST Regime. HISTORY In 1990’s tax authorities felt that taxable value was very low as compared to RSP (Retail Sale Price, which is final price paid by the consumer) declared on packages and also there were lot issues in excise valuation relating to various business arrangements viz., contract manufacturing, job work, warehouse /depot based sales), complex distribution channels, etc To tackle such issues, Govt. introduced a new method of valuation for payment of Central Excise duty based on the RSP after taking abatement, through an amendment in the year 1997, by inserting a new Section ...
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