Government Permits Dual MRP Declaration on Unsold Stock Following GST Rate Changes

The Ministry of Consumer Affairs, Food and Public Distribution has issued a circular granting manufacturers, packers, and importers a temporary concession to declare a revised retail sale price (MRP) on their unsold stock of pre-packaged commodities. This measure is a direct response to recent changes in Goods and Services Tax (GST) rates. This notice was issued on September 9, 2025.

The permission, issued under Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011, is valid until December 31, 2025, or until the existing stock is exhausted, whichever is earlier.

Conditions for Declaring New MRP

To ensure consumer protection, the circular outlines strict conditions for declaring the new MRP on packages:

  • Original MRP Must Remain Visible: The original MRP on the package must not be overwritten. The revised price should be declared by stamping, using a sticker, or through online printing, in addition to the existing price.
  • Price Difference Limited to Tax Change: The difference between the original and revised price cannot be higher than the actual increase or imposition of the new GST. If the GST has been reduced, the revised price must reflect that reduction.
  • Public and Dealer Notification: Manufacturers, packers, or importers are required to publish at least two advertisements in one or more newspapers and circulate notices to dealers and relevant legal metrology authorities to inform the public of the price change.

The circular also provides clarification on the use of existing packaging materials. Companies are allowed to use any packaging or wrappers manufactured before the GST revision until December 31, 2025, or until the stock runs out. The MRP can be corrected on this packaging using a sticker, stamping, or online printing.

This circular is intended to provide a practical solution for businesses to manage their inventory and reduce waste, while also ensuring transparency and fairness for consumers following changes in the tax structure.

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