Centre allows MRP revision on unsold stock amid GST rate changes

The Ministry of Consumer Affairs has granted manufacturers, packers, and importers of pre-packaged goods permission to revise the Maximum Retail Price (MRP) on unsold stock in light of changes to Goods and Services Tax (GST) rates. The move is aimed at ensuring compliance with tax revisions without creating fresh packaging waste or disruption in supply chains.

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According to a notification issued by the Department of Consumer Affairs’ Legal Metrology division on September 9, companies will be allowed to declare revised MRPs on stock manufactured, packed, or imported prior to the GST rate change.

This flexibility will remain in effect until December 31, 2025, or until existing stocks are exhausted, whichever is earlier.

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The revised prices can be declared by way of stamping, stickers, or online printing, but the original MRP must continue to be displayed. Importantly, the difference between the old and new price cannot exceed the actual change in GST- whether an increase or a reduction.

"The difference between the retail sale price originally printed on the package and the revised price shall not, in any case, be higher than the extent of increase in the tax, if any, or in the case of imposition of fresh tax, such fresh tax, on account of implementation of GST Act and Rules. In the case of reduction of tax, the revised price shall not, in any case, be higher than the extent of price after reduction of tax, if any," it said.

The ministry has also directed companies to advertise such price changes in at least two newspapers and circulate notices to dealers, as well as notify the Director of Legal Metrology at the Centre and respective state controllers.

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Further, packaging material or wrappers printed before the GST revision can continue to be used for packing until December 31, 2025, provided that the corrected MRPs are clearly indicated as per the new tax structure.