MRP Compliance: What Every Distributor Must Know
Maximum Retail Price (MRP) compliance is one of the most scrutinized aspects of Legal Metrology for distributors. Understanding the nuances can prevent costly penalties.
Key MRP Rules
- MRP includes all taxes: The declared MRP must be inclusive of GST and all other applicable taxes
- Selling above MRP is illegal: Even if a retailer paid higher trade prices, selling above MRP is punishable
- Discounts are allowed: Selling below MRP is perfectly legal and common in trade promotions
- MRP alteration: Only the original manufacturer can revise MRP, and the revised price cannot exceed the original
Common Violations by Distributors
The most common violations include stickering higher MRP over original print, not accounting for GST changes in MRP, and distributing products with expired MRP stickers. SpireStock's billing module automatically validates MRP compliance during invoicing.
