Companies will have three months time to sell unsold inventory with them before the date of the roll out of the goods and services tax by putting up an additional sticker to reflect any price change.

The window will be available between July 1 and September 30 after which, they will have to issue fresh stickers, which reflects the GST rate.

“The benefits of decreased prices, by reduction of tax after imposition of GST, should reach the consumers,” Minister of Food and Public Distribution, Consumer Affairs, Ram Vilas Paswan said, adding that shopkeepers not mentioning the revised retail price will be liable for legal action.

“For any increase in price due to GST, manufacturers and retailers can sell goods manufactured before July 1 at the higher price, along with two advertisements in the local newspaper about the price rise, and a sticker on the product with the higher price. The earlier price should also be visible,” said Consumer Affairs Secretary Avinash Srivastava.

An official notification also warned 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 tax” or in the case of imposition of fresh tax on account of the implementation of the GST.

The move comes at a time when the government is in the process of setting up an anti-profiteering authority to curb any unwarranted price rise after the new levy. Companies are also left with unsold stock that does not reflect the earlier price.

Stressing that the government is keeping a close on watch on prices and supply of goods after the roll out of GST, Revenue Secretary Hasmukh Adhia said that there have been no reports of any disruptions.

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