Government allows revision in MRP of unsold stock as per new GST rates
The revision in MRP of unsold stock as per the new GST rates is allowed until 31 December 2025 or till stocks last—whichever is earlier.
The government has allowed manufacturers, packaging firms and importers to change MRP on unsold stock to reflect the new GST rates, until 31 December 2025 or till stocks last—whichever is earlier.
“The revised prices must reflect GST changes only. The old MRP must remain visible,” Pralhad Joshi, the union minister for consumer affairs, food and public distribution, said in a post on X. “Any increase or decrease in prices can only match the tax change. This measure ensures transparency and protects consumer interests.”
According to a notice issued by the union consumer affairs ministry, the “new” MRP has to be either stamped, stuck on and printed on the packaging of the product, in a way that the original MRP is still visible. There should be no overwriting of any kind.
The difference between the original MRP and the new MRP should reflect changes only due to the new GST rates. Additionally, manufacturers, packers and importers can continue to use existing packaging material or wrapper until 31 December or until stocks last—whichever is earlier. They also have to publish two ads in one or more newspapers to advertise the revision in MRP of their products.
On 4 September, India announced sweeping GST reforms that rationalised the indirect tax to just two slabs from four earlier. Most essential items are in the 5% tax slab while discretionary goods attract 18% GST. Sin goods and luxury items are in a new 40% slab.
{{/usCountry}}On 4 September, India announced sweeping GST reforms that rationalised the indirect tax to just two slabs from four earlier. Most essential items are in the 5% tax slab while discretionary goods attract 18% GST. Sin goods and luxury items are in a new 40% slab.
{{/usCountry}}Essentially, nearly all fast-moving packaged goods are in the 5% GST slab, which requires a price revision on their packaging.
{{/usCountry}}Essentially, nearly all fast-moving packaged goods are in the 5% GST slab, which requires a price revision on their packaging.
{{/usCountry}}“This measure provides dual benefits: it ensures that consumers are informed of the revised prices, and, at the same time, helps industries avoid large-scale wastage of packing material,” Saurabh Agarwal, tax partner at EY, told Hindustan Times over WhatsApp.
{{/usCountry}}“This measure provides dual benefits: it ensures that consumers are informed of the revised prices, and, at the same time, helps industries avoid large-scale wastage of packing material,” Saurabh Agarwal, tax partner at EY, told Hindustan Times over WhatsApp.
{{/usCountry}}“From an industry perspective, this extension…provides much-needed operational flexibility to sectors like retail and pharma with large packaging inventories,” he said. “It allows companies to reuse existing packaging material, thereby reducing raw material costs, while at the same time ensuring adherence to regulatory compliance.”
{{/usCountry}}“From an industry perspective, this extension…provides much-needed operational flexibility to sectors like retail and pharma with large packaging inventories,” he said. “It allows companies to reuse existing packaging material, thereby reducing raw material costs, while at the same time ensuring adherence to regulatory compliance.”
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