Companies Asked to Revise MRP on Unsold Stock to Reflect GST Rate Cuts: Minister Joshi

The Centre has directed manufacturers, packers, and importers to revise the Maximum Retail Price (MRP) on unsold stock in line with upcoming Goods and Services Tax (GST) rate reductions, Union Food and Consumer Affairs Minister Pralhad Joshi said.

The revised GST rates on various goods and services are set to take effect from September 22, and companies will be allowed to update MRPs on existing inventory accordingly until December 31, 2025, or until the stock is exhausted — whichever comes first.

In a post on social media platform X (formerly Twitter), Minister Joshi said the updated prices must reflect only the impact of GST changes, with no arbitrary increase or unrelated adjustments allowed.

"As per the new GST rates, manufacturers, packers, and importers can revise the MRP on unsold stock until December 31, 2025. Any increase or decrease in price can only match the tax change," Joshi stated.

To ensure transparency, companies must display the new MRP using a sticker, stamp, or online print, while ensuring that the original price remains clearly visible. This is intended to help consumers compare the old and new pricing and verify that any changes are strictly tax-related.

The minister also instructed businesses to inform consumers proactively through advertisements and public notices about the price adjustments, reinforcing the government’s commitment to protecting consumer interests.

"This measure ensures transparency and protects consumer interests," Joshi added.

The move comes amid efforts by the government to pass on the benefits of tax cuts to consumers in a clear and accountable manner. It also aligns with existing provisions under the Legal Metrology (Packaged Commodities) Rules, which allow for price revisions on account of changes in tax rates.

The directive is particularly relevant for FMCG companies, electronics manufacturers, and other sectors holding substantial unsold inventory as the festive season approaches.

Consumer rights groups have welcomed the announcement, saying clear guidelines and proper labeling will help prevent pricing malpractice and ensure fair trade practices in the market.

With the deadline set till the end of 2025, companies are expected to act swiftly to comply and ensure smooth implementation across retail and distribution networks.

(Source: PTI)