Govt Allows MRP Revision on Unsold Stock Post GST Rate Change

The Department of Consumer Affairs has announced that manufacturers, packers, and importers of pre packaged commodities can revise MRPs on unsold stock manufactured or imported before the latest GST rate revisions.

Transparency and Compliance Requirements for Revised MRPs

The revised MRP may be indicated using stamping, stickers, or online printing, as long as the original MRP remains visible and unaltered. Importantly, the difference between the old and new prices must not exceed the actual tax increase or decrease.

To ensure transparency, companies must publish at least two advertisements in one or more newspapers and notify dealers, the Director of Legal Metrology in the Central Government, and Controllers of Legal Metrology in States and Union Territories.

Temporary Relief for Companies to Clear Old Stock

This relaxation is valid until December 31, 2025, or until existing stock is cleared, whichever comes first. Packaging material produced before the revision can also be used until the same deadline, provided corrections to MRPs are made.

The decision comes after consumer goods companies requested more time to adjust to the revised GST structure. FMCG firms and distributors had raised concerns about managing old stock and sought clarity on whether price reductions could also be passed on through increased grammage in small packs.

They argued that additional time was needed to manage inventories already present in warehouses and on shelves under the outgoing GST framework.

Read More: GST 2.0 Impact on ITC: What Lower FMCG Taxes and Higher Tobacco Levies Mean.

Conclusion

By allowing MRP revisions on unsold stock, the government has addressed key industry concerns while safeguarding consumer interests. This transitional relief ensures smoother compliance with GST changes and helps avoid disruptions in the supply chain.

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