Jammu and Kashmir Finance Minister Haseeb Drabu has proposed doing away with the MRP (maximum retail price) under the recently rolled-out Goods & Services Tax (GST).
“MRP is from a pre-lebralised era…We need to now abolish MRP to allow market forces and differently priced goods,” Drabu was quoted by The Hindu online as saying at the annual general meeting of FICCI in New Delhi on Thursday.
While West Bengal Finance Minister Amit Mitra said States were facing a revenue shortfall of Rs. 39,111 crore in the first four months of rollout of GST, Drabu and Bihar Deputy Chief Minister Sushil Modi both expressed hope that revenue collections under GST will stabilise over the next few months.
West Bengal Finance Minister Amit Mitranoted the challenges being faced by the small and medium enterprises under GST and agreed that more needs to be done.
Drabu suggested that the composition scheme for small businesses with an annual turnover of up to Rs. 1 crore should be tweaked to allow some input tax credit. “Larger companies are not buying from small businesses due to lack of input tax credit,” he noted.
He also called for bringing back the reverse charge mechanism under GST that has been deferred till March.