In a major relief for the industry, the Centre has allowed consumer products companies to revise MRP of unsold stocks in line with new GST rates using stamping, stickers and online printing. They have been also allowed to use existing packaging material and wrappers till December 31 or till the stocks last.
The companies will need to ensure that the original MRP is displayed along with the revised MRP. They must also inform consumers, dealers and distributors about the changes in retail prices through ads and public notices.
The notification followed a high-powered meeting chaired by Cabinet Secretary TV Somanathan on Monday to examine measures required to ensure implementation of GST Council decisions. Sources said senior Finance Ministry officials have also begun meeting industry players and associations to iron out any challenges in implementing the new GST rates.
Union Minister Pralhad Joshi said on X: “As per the new GST rates, manufacturers, packers, and importers can revise the MRP on unsold stock until 31st December 2025 (or until stock lasts). Revised prices must reflect GST changes only. The old MRP must remain visible. Any increase or decrease in price can only match the tax change.”
Letter issued
In a letter to industry bodies and stakeholders, the Department of Consumer Affairs said the Centre has allowed manufacturers, packers or importers of pre-packaged commodities to declare the revised retail sales price (MRP) on the unsold stock that was manufactured prior to revision of GST after inclusion of applicable increased or reduced amount of tax due to change in GST upto December 31 or till the time the stock is exhausted.
It added that the declaration of the revised retail price should be made through stamping, putting stickers or online printing. The letter stressed that companies will need to ensure that the original MRP will continue to be displayed and the revised price “should not be overwritten”.
Players said that this will ensure operational ease with regards to sale of pipeline inventory especially lying with retailers and distributors. Mayank Shah, Vice-President, Parle Products said, “FMCG companies usually have packaging material with printed MRPs with a lead time of 40-60 days. Now companies will be able to use this material and prevent large scale wastage.”
Naveen Malpani, Partner and Consumer Industry Leader, Grant Thornton Bharat, said, “This comes at a crucial juncture as the industry transitions into GST 2.0. This pragmatic step provides much-needed operational ease and regulatory clarity for FMCG players, while safeguarding consumer interest by ensuring transparent price adjustments strictly linked to GST rate changes.”
Source: The Hindu businessline
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