NEWS

Govt Eases GST Transition: Manufacturers Can Revise MRPs on Unsold Stock

The Department of Consumer Affairs has permitted manufacturers, packers, and importers to revise the maximum retail price (MRP) of unsold stock following changes in GST rates bringing much-needed relief to both companies and consumers.

  • How it works: Revised MRPs can be declared through stickers, stamping, or online printing, provided the original price remains visible. Companies must also issue at least two newspaper notices and inform legal metrology authorities at both central and state levels.
  • Timeline: This relaxation is valid until December 31, 2025, or until stocks are cleared, whichever comes first.
  • Industry response: FMCG majors like Hindustan Unilever, Procter & Gamble, and L’Oréal had sought clarity on passing benefits to consumers, especially in low-unit packs. Traditionally, they’ve preferred offering extra grammage rather than tinkering with popular price points like ₹10 or ₹20.
  • Distributor concerns: Wholesalers and retailers were also seeking guidance on managing pre-GST inventory under the revised regime.

This move, effective September 9, 2025, aims to smoothen the transition for the industry while ensuring consumers benefit from lower tax rates.

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