RMPV Calculator: Auto Component Raw Material Price Escalation Claims
Indian auto component contracts include raw material price variation (RMPV) clauses tied to commodity indices. Compute the supplementary invoice (price up) or credit note (price down) for any part across any quarter — JPC HR/CR coil for steel, LME for aluminium/copper, polymer index for plastic. Adjust the 6 inputs to match your contract; the claim updates instantly.
Your RMPV inputs
Different materials have different reference indices.
Net material content of the finished part.
The reference index at contract base date.
The reference index for the current revision period.
Parts supplied to the OEM in the revision period.
Many contracts have a "first 3%" trigger before claim kicks in.
USD to INR for LME-quoted materials; ignored for INR-quoted indices.
How the RMPV claim decomposes
The headline number is built from material type, weight per part, base and current index levels, quantity, trigger band, and (for LME materials) forex. The breakdown below shows each input so it can be tied back to the contract clause and the OEM dispute window.
| # | Description | Value |
|---|---|---|
| 1 | Material type | Steel HR coil |
| 2 | Material weight per part (kg) | 2.8 |
| 3 | Quantity supplied (period) | 12,000 |
| 4 | Base index level | ₹54,000 / MT |
| 5 | Current index level | ₹57,240 / MT |
| 6 | Index movement (₹/MT and %) | +₹3,240 (+6.00%) |
| 7 | Net RMPV claim (after trigger band) | ₹1,08,864 |
Methodology and assumptions
Index references
JPC monthly average for HR and CR coil steel (jpcindiansteel.nic.in). LME cash settlement for non-ferrous metals (aluminium, copper, zinc). Polymer parts typically reference HDPE/PP IOC or RIL list price for the revision month.
Trigger band
Most OEM-Tier 1 contracts carry a 3-5% buffer that the supplier absorbs before the RMPV claim kicks in. The calculator applies the trigger band as a discount factor on the net claim — change the slider to match your contract.
GST treatment
A price-up revision is a fresh supply, raised as a supplementary invoice under Section 9 of CGST. A price-down revision is a credit note under Section 34, with a hard deadline of 30 November following the FY of the original supply.
Time of supply
Retrospective price revisions interact with the time-of-supply rules in Section 13 of CGST. Quarterly RMPV revisions issued in the following quarter typically attract the GST rate prevailing on the supplementary invoice date.
Related guides
RMPV Clause Explained
How OEM-Tier 1 contracts reference JPC and LME indices, and where suppliers most often lose recovery.
RMPV Calculation Formula
Step-by-step worked example for steel, aluminium, and polymer parts under a quarterly revision cycle.
RMPV Reconciliation Workflow
How to reconcile RMPV claims raised, OEM credit memos received, and GST treatment across a quarter.
Frequently Asked Questions
What is RMPV in auto component contracts? +
RMPV stands for Raw Material Price Variation. Indian auto component supply contracts with OEMs almost always carry an RMPV clause that links the part price to a published commodity index — JPC HR/CR coil for flat steel, LME for aluminium and copper, and a polymer index for plastic components. When the reference index moves between the base date and the revision period (typically quarterly), the part price is revised retrospectively. The supplier raises a supplementary invoice for a price-up movement, or issues a credit note for a price-down movement.
Which indices are typically referenced for steel, aluminium, and copper? +
Flat steel contracts use the Joint Plant Committee (JPC) all-India HR coil or CR coil monthly average, published at jpcindiansteel.nic.in in ₹/metric tonne. Aluminium contracts reference the London Metal Exchange (LME) cash settlement in USD/MT, converted to INR at the RBI reference rate for the revision period. Copper contracts use LME cash settlement in USD/MT, again INR-converted. Polymer parts reference a basket index such as HDPE or PP IOC/RIL list price. The contract names the index, the base date level, the revision frequency, and the trigger band.
How does the trigger band work? +
Most OEM-Tier 1 contracts include a trigger band — typically 3% — that the supplier absorbs before the RMPV claim kicks in. If the index has moved by 5% and the trigger band is 3%, the claim is computed only on the 2% above the band. The trigger band is sometimes applied symmetrically (supplier absorbs the first 3% up, OEM absorbs the first 3% down) and sometimes asymmetrically. The calculator above applies the trigger band on the net movement, which is the most common contractual position.
What GST treatment applies to an RMPV supplementary invoice or credit note? +
A price-up RMPV revision triggers a supplementary invoice under Section 9 of CGST Act as a fresh supply, with GST charged at the rate applicable to the part on the date of the supplementary invoice. A price-down RMPV revision triggers a credit note under Section 34, which must be issued and reported in GSTR-1 by 30 November of the financial year following the year of the original supply, failing which the GST reduction is not allowed. Retrospective revisions also raise time-of-supply complications under Section 13 of CGST.
When does the OEM dispute window typically close on an RMPV claim? +
OEM-Tier 1 contracts commonly give the OEM 30 to 60 days from receipt of the supplementary invoice to dispute the index level, the weight per part, or the quantity supplied. The supplier should attach the JPC or LME index print-out for the base date and revision period, the certified bill of material for material weight, and the dispatched quantity ledger. Disputes most frequently centre on which monthly average to use when the revision period spans a month-end and on the forex rate for LME-quoted materials.
Reconcile every RMPV revision against the OEM dispute window
TransactIG tracks RMPV supplementary invoices raised, OEM credit memos received, and GST treatment per quarter — with a documented audit trail per part and per index.