TaxTMI 
TaxTMI 
TaxTMI 
Since the recommendations of 56th meeting of GST Council are to be implemented from 22.09.2025, which majorly relate to reduction of GST rates or exemption from GST in relation to many consumer goods and goods of mass consumption, Central Government has come out with measures which would facilitate the businesses, i.e., manufacturers, packers and importers to use the unsold stocks / inventories of finished goods available with the distribution channels in the system.
Subsequent to GST rate rationalization announced after 56th Council meeting held on 3rd September, 2025 to be implemented w.e.f. 22th September, 2025, Department of Consumer Affairs Weights & Measures Unit), Ministry of Consumer Affairs, Food and Public Distribution (CAFPD) vide F.No. I-10/14/2020-W&M dated 09.09.2025 issued by Director, Legal Metrology, Ministry of CAFPD, Government of India has granted permission to the manufacturers or packers or importers of pre-packaged commodities to declare the revised retail sale price (MRP) on the unsold stock as on 22.09.2025 under the Legal Metrology (Packed Commodities) Rules, 2011.
Accordingly, Central Government has permitted 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 change in GST, if any, in addition to the existing retail sale price (MRP) upto 31st December, 2025 or till such date the stock is exhausted, whichever is earlier.
The following are the important points which taxpayers must know:
- Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing, as the case may be.
- This shall be subject to the following conditions:
- The original MRP shall continue to be displayed and the revised price shall not overwrite on it.
- 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.
- Manufacturers or packer or importers shall make atleast two advertisements in one or more newspapers in this regard and also by circulation of notices to the dealers and to the Director of Legal Metrology in the Central Government and Controllers of Legal Metrology in the States and Union Territories, indicating the change in the price of such packages.
- 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 31st December, 2025 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.
The taxpayers dealing with consumer products can now revise the retail price (called maximum retail price or MRP) of unsold stock as per new GST rates which will be made effective from 22.09.2025 by using methods such as affixing stalkers, stamping / re-tagging or online printing. Also it has been allowed to use existing packing material / wrappers till 31st December, 2025 on till the stock is exhausted, whichever is earlier.
On the part of businesses, it will be obligatory to ensure that –
- Original MRP is displayed along with the revised MRP so that difference in price is known.
- Consumers, dealers and distributors are informed about price changes through atleast two advertisements in one or more and news papers and public notices etc.
- Original MRP should not be over-written
- Old (Pre-22 September, 2025) rate or MRP must remain visible
- Change in price should atleast match the tax rate change
From Government’s view point, such permission will also help check and track malpractices leading to profiteering by some businesses / taxpayers.
Companies will have to do this exercise within a time frame to meet 22 September, 2025 deadline as it would otherwise impact sales in festive season. Companies also ought to update their ERP systems, invoicing software, inventory management software and point of sale counters. They will have to gear up to meet logistic and operational challenges. Smaller businesses will have to deal with more carefully.
This shall provide a major relief to such businesses and facilitate implementation of rate cuts smoothly without any logistical issues. The effect of this timely intervention and allowing businesses to easily implement the GST rate cut decision shall only facilitate ease of doing business, ensure better transparency and removal of confusion in the minds of consumers and is a right step in protecting the interests of consumers. At the same time, it will help in use of inventory of goods-in-transit and at various levels of distribution network, besides avoiding wastage of goods and saving costs. It is going to ensure smooth implementation of GST rate cuts in a timely and transparent manner, keeping in view the festive season ahead.