The Government has permitted companies, after the change of GST, to indicate revised retail price via a stamp or sticker on unsold packaged goods till January next year. It has also made it clear the change in the prices should not exceed the increase of tax. Also, the price should not be overwritten.

Based on recommendations by GST Council, pre-packaged and pre-labelled products including curd, lassi, butter milk, flour, rice, pulses etc are attracting GST at the rate of 5 per cent with effect from July 18. Earlier, while there was no GST on curd, lassi, butter milk, only branded flour, rice, pulses etc were attracting GST.

“The Central Government hereby permits manufacturers or packers or importers of pre-packaged commodities to declare the revised retail sale price (MRP) on the unsold stock manufactured /packed / imported prior to revision of GST, after inclusion of the applicable/ increased amount of tax or after reducing the reduced amount of tax due to GST, if any, in addition to the existing retail sale price (MRP) upto January 31, 2023 or till such date the stock is exhausted, whichever is earlier. Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing,” a communication by Consumer Affairs Ministry to all the States and Union Territories said.

No overwriting on original MRP

It also said that the difference between the retail sale price originally printed on the package and the revised price shall not, in any case, be higher than the extent of increase in the tax, if any, or in the case of imposition of fresh tax, such fresh tax, on account of implementation of GST Act and Rules. In the case of reduction of tax, the revised price shall not, in any case, be higher than the extent of price after reduction of tax, if any. “The original MRP shall continue to be displayed and the revised price shall not overwrite on it,” the communication said.

Further, manufacturers or packers or importers are to give atleast two advertisements in one or more newspapers in this regard and also by circulation of notices to dealers and to government indicating the price change of such packages.

Packing material, wrapper

It has also been clarified that 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 upto January 31 next year or till such date the packing material or wrapper is exhausted, whichever is earlier after making corrections required in retail sale price (MRP) on account of implementation of GST by way of stamping or putting sticker or online printing as the case may be.

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