MRP
Also called: Maximum Retail Price
What is MRP?
MRP, or Maximum Retail Price, is the highest price at which a packaged commodity may be sold to a consumer in India, inclusive of all taxes. It must be printed on the pack, and selling above it is an offence.
Why MRP matters
For retailers, MRP caps the upside on packaged goods, so margin has to be won at the buying end. For manufacturers, setting MRP fixes the whole chain's margin structure at once.
MRP formula
Taxable value = MRP × 100 ÷ (100 + GST rate)
Applies where the item is sold at MRP with no further discount.
How MRP works in practice
Because MRP is tax-inclusive, the taxable value has to be backed out of it for billing and returns. Discounting below MRP is always allowed; the printed figure is a ceiling, not a fixed price.
Frequently asked questions
No. MRP is a legal maximum regardless of service or storage, though separately priced service can apply in some settings.