The Centre has permitted consumer goods companies to revise the maximum retail price (MRP) of unsold stock in line with new GST rates. The revised prices can be declared through stamping, stickers or online printing, while the original MRP must remain visible.
The relaxation will remain in force until December 31, 2025, or until existing stock is cleared. Companies will also be allowed to use old packaging and wrappers during this period.
According to the notification, manufacturers, packers and importers must clearly display both the old and revised MRPs. Any increase or decrease in price must correspond strictly to the change in GST rates.
The government has directed companies to inform consumers, dealers and distributors about the changes in retail prices through advertisements and public notices.
The decision follows a meeting chaired by cabinet secretary TV Somanathan on Monday to review implementation of GST Council decisions. Senior Finance Ministry officials have also begun consultations with industry associations to address practical challenges.
Industry players welcomed the move, calling it both practical and timely. Mayank Shah, vice-president of Parle Products, said the decision will help companies avoid wastage of packaging material that is usually procured with a 40-60 day lead time.
Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat, quoted in a news report saying, “This provides much-needed operational ease and regulatory clarity for FMCG players, while safeguarding consumer interest by ensuring transparent price adjustments strictly linked to GST rate changes."
