GST 2.0 Transition: Government Pushes MRP Declaration Deadline to March 31, 2026

The government has given companies a much-needed breather by extending the deadline for revising maximum retail prices (MRPs) on goods following the recent overhaul in goods and services tax (GST) rates. 

According to the Consumer Affairs Ministry, manufacturers, packers, and importers can continue using existing packaging material and wrappers until March 31, 2026. This move ensures that businesses can adjust gradually to the new tax regime without the wastage of inventory worth thousands of crores.

Deadline Extension and New Requirements

The fresh circular replaces the earlier September 9 notification, which had allowed companies to use old packages until December 31, 2025, and had mandated newspaper advertisements to inform consumers about revised prices. 

Now, firms only need to notify distributors and retailers through circulars. The ministry clarified that there is no mandatory requirement for repackaging, re-labelling, or re-stickering, easing the compliance burden.

The official order stated, “Any packaging material or wrapper which could not be exhausted by the manufacturer or packer or importer prior to revision of GST, may be used for packing of material up to March 31, 2026.” However, companies must immediately sensitise dealers, retailers, and consumers about the revised GST rates through all possible channels, including electronic, print, and social media.

Industry Concerns and Relief 

Industry bodies had earlier flagged that many companies held months of inventory at factories and across the supply chain, carrying old prices and grammage. Without an extension, they warned, goods worth thousands of crores could have become unsellable. The government’s decision to push the deadline until the end of this fiscal year has been welcomed as a significant relief that prevents potential disruptions and losses.

GST Rate Cuts and Impact on Consumers

The revised GST structure, effective from September 22, 2025, has brought down taxes across a wide range of products. Rates on butter, cheese, and confectionery were slashed from 12% to 5%, while chocolates, biscuits, cornflakes, coffee, ice-cream, hair oil, soaps, and toothpaste have also seen cuts from 18% to 5%. 

In a major boost to healthcare, 36 lifesaving drugs and medicines are now completely exempt from GST. Additionally, footwear and apparel up to ₹2,500 will attract 5% GST, whereas items priced above this threshold will be taxed at 18%.

Read More: GST Overhaul to Save Consumers ₹58–₹88 Per Month: FICCI Report!

Conclusion

By extending the MRP declaration deadline, the government has balanced regulatory compliance with practical business needs. The move not only offers companies the flexibility to manage existing stock but also ensures that consumers quickly benefit from the revised GST rates. 

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