Government Allows MRP Stickers on Old Stock After GST Rate Changes

In a move that brings major relief to manufacturers, the Indian government has allowed companies to continue using old packaging by adding new price stickers to show revised rates after recent GST changes. This decision will help businesses avoid the wastage of unsold stock due to packaging issues.

MRP Stickers Must Show Old Prices Still

According to the Ministry of Consumer Affairs, Food and Public Distribution, companies can now update prices by using a sticker or stamp. However, it has warned that the original Maximum Retail Price (MRP) must still be visible, and the revised rates and should not overwrite the old price.

The government has allowed this method until December 31, 2025, or until existing stock is sold, whichever happens first, for companies.

Companies Must Inform Consumers

To ensure transparency, companies must also publish two newspaper advertisements to inform the public about the revised prices. This step is meant to keep consumers aware of pricing changes and prevent confusion.

MRP Stickers to Bring Relief for Apparel and Footwear Brands

Industry groups such as the Retailers Association of India and the Clothing Manufacturers Association of India had raised concerns. They pointed out that retailers were stuck with 2-3 months of inventory with old pricing, especially after GST on apparel and footwear priced above ₹2,500 increased from 12% to 18%. Without this relief, companies risked losing crores of rupees.

Now, they can pass on the cost to consumers by updating the MRP with stickers, rather than absorbing the loss themselves.

Major GST Rate Reductions on Everyday Items

While some GST rates increased, many consumer items saw tax cuts. For example:

• GST on butter, cheese, and confectionery reduced from 12% to 5%
• Chocolates, biscuits, cornflakes, coffee, ice cream, hair oil, soaps, and toothpaste are now taxed at 5% instead of 18%
• GST on 36 life-saving drugs reduced to 0%
• Footwear and apparel up to ₹2,500 now taxed at 5% (up from ₹1,000 earlier)

These new GST rates will come into effect from September 22, aligning with the start of Navratri, a major festive season that could boost consumer spending.

Read more: Corporate India’s Q2 Hiring Slows, Flexibility in Focus.

Conclusion

The government’s decision to allow revised price stickers on old packaging strikes a balance between consumer rights and business practicality. It helps manufacturers avoid large-scale losses while ensuring that customers are clearly informed about pricing changes. With the new GST rates kicking in just before the festive season, this move is expected to benefit both sellers and buyers alike.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.