Govt Allows Companies To Revise MRP On Unsold Stock Following GST Rate Changes
The government has allowed manufacturers, packers, and importers to declare revised maximum retail prices (MRP) on unsold stock to reflect the latest changes in goods and services tax (GST) rates. The deadline for this exercise is December 31, 2025, or until the existing stock is sold, whichever is earlier.
The move follows the reduction in GST on several products and services, which takes effect from September 22. Announcing the decision on X, Union Food and Consumer Affairs Minister Pralhad Joshi said, “As per the new GST rates, manufacturers, packers, and importers can revise the MRP on unsold stock until December 31, 2025, (or until stock lasts)."
He clarified that the revision must only correspond to the tax change. “Any increase or decrease in price can only match the tax change," the minister emphasised.
The directive allows the revised MRP to be displayed using a sticker, stamp, or online print, but the original price must remain visible. In addition, companies are required to issue at least two advertisements in one or more newspapers about the revision and notify dealers as well as state and central officials.
Packaging material printed before the GST revision can still be used until December 31, or until it runs out, provided the MRP is updated to account for the tax change. Joshi said the measure is aimed at ensuring transparency and protecting consumers’ interests.
56th GST Council Meeting
Last week, the 56th meeting of the GST Council took place, and it approved multiple scenarios for GST reductions.
The GST Council also cleared the Centre’s proposal to streamline the indirect tax structure into a dual slab of 5% and 18%, with a special 40% slab earmarked for sin and luxury goods. This overhaul will replace the existing four major slabs — 5%, 12%, 18%, and 28% — with a simplified two-rate system. Under the new framework, essential or “merit" goods will be taxed at 5%, while most goods and services will fall under the 18% standard rate.
It also cut GST on a large number of daily-use products, from groceries and medicines to cement and small cars. At the same time, sin goods and luxury products will become significantly more expensive as the GST Council raised rates on tobacco, fizzy drinks and high-end vehicles.
