The Ministry of Consumer Affairs, Food and Public Distribution has permitted manufacturers, packers, or importers of pre-packaged commodities to declare the revised Retail Sale Price (MRP) on unsold stock pursuant to changes in GST rates, up to 31 December 2025 or until such stock is exhausted, whichever is earlier. Declaration of the revised MRP, in addition to the existing MRP, shall be made by stamping, putting stickers, or online printing, as applicable, after complying with the following conditions:
- The original MRP shall continue to be displayed, and the revised price shall not overwrite it.
- The difference between the original MRP printed on the package and the revised price shall not exceed the extent of increase in tax, if any, or in the case of imposition of fresh tax, such fresh tax on account of implementation of the GST Act and Rules. In case of reduction of tax, the revised price shall not, in any case, be higher than the price after reduction of tax, if any.
- Manufacturers, packers, or importers shall publish at least two advertisements in one or more newspapers regarding this matter and circulate notices to dealers, the Director of Legal Metrology in the Central Government, and Controllers of Legal Metrology in the States and Union Territories, indicating the change in price of such packages.
It has also been clarified that any packaging material or
wrapper that could not be exhausted by the manufacturer, packer, or
importer prior to the revision of GST may be used for packing goods
up to 31 December 2025 or until exhaustion of such material,
whichever is earlier, after making necessary corrections in the MRP
on account of GST implementation by stamping, putting stickers, or
online printing, as applicable.
A copy of the advisory dated 9 September 2025 is enclosed herewith
for your reference.
Our Comments
This advisory provides much-needed clarity and guidance for
businesses dealing in MRP-mandated products such as
pharmaceuticals, medical devices, processed or packaged food, FMCG,
personal care products, consumer durables, etc. The government has
provided a transition window of approximately three months to
exhaust existing stock and packaging material with an additional
declaration of the revised MRP, subject to compliance with
prescribed conditions.
This entails active engagement with and sensitization of all
stakeholders in the supply chain such as CFAs, distributors, and
retailers to ensure that the price revision is appropriately
reflected on pre-revision unsold stock. Conversely, fresh stock
with revised MRPs should be released from the notified date
onwards, i.e., the effective date of the new GST rate - 22
September 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
