New Delhi: The Department of Consumer Affairs on Tuesday permitted manufacturers, packers, and importers to revise the Maximum Retail Price (MRP) on unsold stock following the latest GST rate revisions — a move expected to benefit both consumers and companies.
The decision, effective September 9, 2025, allows revised MRPs to be displayed through stamping, stickers, or online printing, provided the original price remains visible. The price change cannot exceed the actual GST rate adjustment.
Conditions for Revised Pricing
As per the order, companies must:
- Publish at least two advertisements in one or more newspapers.
- Inform dealers and the Director/Controllers of Legal Metrology at the central and state levels.
- Ensure the revised MRP does not overwrite the original.
The permission is valid until December 31, 2025, or until stock is sold, whichever is earlier. Packaging materials printed before the GST change can be used within the same period after updating prices.
Industry Concerns and Transition Challenges
Consumer goods companies had sought more time beyond the September 22 GST rollout to manage old inventory, citing:
- Logistical challenges in handling dual inventories.
- Clarification on whether price benefits could be passed through increased grammage in small packs.
- High stock levels ahead of the festive season, especially in gifting packs.
Distributors also sought guidance on managing goods already in warehouses or on retail shelves priced under the outgoing GST regime.
Past GST Transitions and Industry Response
In 2017, several firms faced tax demands from the National Anti-Profiteering Authority for allegedly failing to pass on GST benefits to consumers.
“With these tax reductions, we will respond quickly to support retailers nationwide,” said Ahmed Abdel Wahab, General Manager at Mars Wrigley India.