In view of the recent decision to impose 5% GST on pre-packaged commodities, the Department of Consumer Affairs vides its letter dated 01.08.2022 clarified the Impact of GST on unsold stock of Pre-Packaged Commodities under Legal Metrology (Packaged Commodities) Rules 2022.
As per the letter issued on Monday, the manufacturers or packers, or importers are permitted to declare revised MRP on unsold stock up to 31.01.2023.
The department, in a letter addressing the Controller of Legal Metrology, clarified that “the central government hereby permits the manufacturers or packers or importers of pre-packaged commodities to declare the revised retail sale price (MRP) on the unsold stock manufactured /packed I 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 GST, if any, in addition to the existing retail sale price (MRP) up to 31st January 2023 or till such date the stock is exhausted, whichever is earlier.”
It further clarified that the difference between MRP and revised MRP should be in excess of to increase in Tax.
“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 the 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 the deduction of tax, if any,” the letter said.
It further stated that the manufacturers or packers or importers shall make at least two advertisements in one or more newspapers in this regard and also by the 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.
The letter clarified that 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 the packing of material up to 31st January, 2023 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.Subscribe Taxscan Premium to view the Judgment