Government Allows Revision of MRP on Unsold Inventory After GST Rate Change
The Ministry of Consumer Affairs, Food and Public Distribution has allowed manufacturers, packers, and importers of pre-packaged commodities to revise the retail sale price (MRP) on unsold stock after the recent GST rate changes.
Key Points:
- Revised MRP Declaration – Can be done by stamping, stickers, or online printing on the unsold stock manufactured/packed/imported before GST revision.
- Conditions:
- The original MRP must still be visible, and the revised price cannot overwrite it.
- The difference between old and new MRP should only reflect the exact impact of tax increase or reduction (not more).
- In case of tax reduction, the revised MRP cannot exceed the reduced tax benefit.
- Public Notice Requirement:
- Manufacturers/packers/importers must publish at least two newspaper advertisements and circulate notices to dealers and Legal Metrology Directors (both Central & State) regarding the change in prices.
- Timeline:
- This relaxation is available till 31st December 2025 or until the old stock/packaging material is exhausted, whichever is earlier.
Meaning for Consumers & Businesses:
- Businesses can legally update prices on old stock due to GST changes.
- Consumers can still see both original and revised MRPs for transparency.
- Revised prices must be genuine and only reflect the GST impact (no artificial hike).