"Understanding the Application of GST on Product MRP: What You Need to Know"

Unlike under Central Excise Valuation Section 4A of Central Excise Act 1944 to charge excise duty on goods on MRP basis, there is no pari materia provision under GST law to charge GST on MRP basis.

To give an example on how Central Excise Valuation was done in case of goods notified under Section 4A, there used to be abatement in value. If Rs 100 was MRP , then excise used to be paid on say Rs 70 after availing abatement of 30%.

However in GST era, tax is to be paid on the transaction value irrespective of MRP printed on the package of the item.

Therefore, gst is payable on transaction value of mineral water price in a restaurant and MRP has no relevance on how GST is charged on MRP items.