The Union Ministry of Consumer Affairs, through a notification under the Legal Metrology (Packaged Commodities) Rules, 2011, has provided businesses with much-needed relief in clearing existing stock without incurring additional repackaging costs.
Companies can now increase or decrease the MRP of goods to reflect the GST rate change. As per the notification, the earlier MRP cannot be overwritten; the revised price must be clearly displayed using a sticker, stamp, or online printing. Although most products have seen price cuts after the GST reduction, a few may see an increase due to GST hikes on certain items.
The revised MRP must only reflect the change in GST, with no other cost adjustments permitted. Existing packaging and wrappers with pre-printed MRPs can be used until December 31, 2025, provided the revised price is declared.
Manufacturers are required to publish at least two newspaper advertisements and inform the Director of Legal Metrology (Central) as well as state controllers about the revised MRPs.
The notification ensures that the benefit of GST cuts is passed on to consumers while sparing manufacturers the heavy costs of recalling or repackaging unsold goods. Sectors such as FMCG, textiles, footwear, and consumer electronics, which hold significant unsold stock, are expected to benefit the most.
The Retailers Association of India (RAI) expressed its gratitude to the Department of Legal Metrology for issuing the notification, noting that it allows manufacturers, packers, and importers to declare revised MRPs on unsold stock following GST rate changes. This progressive step ensures that the benefits of reduced GST rates are passed on to consumers swiftly and transparently.
ALCHEMPro News Desk (KUL)
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