Manufacturers can Display New GST-Slashed MRP on Unsold Goods: Consumer Affairs Ministry Sets Date to clear Stock
The latest move mirrors a similar move undertaken by the consumer affairs ministry following the rollout of the GST regime in 2017.
Consumer Goods - Taxscan
Consumer Goods - Taxscan
The Consumer Affairs Ministry has allowed manufacturers, packers and importers of pre-packaged goods to display revised Maximum Retail Price (MRP) on unsold stocks to reflect the rate reductions that were brought about following the 56th Goods and Services Tax (GST) Council meeting. The rate cuts, which are set to take effect from September 22, 2025 shall be reflected by manufacturers on their products by using stamping, stickers or online printing while keeping the original printed MRP visible on packs.
The consumer affairs ministry has directed companies to clear such unsold stocks within December 31, 2025 or until stocks are exhausted, whichever is earlier.
The decision intends to ensure that the reduced tax burden is passed to consumers efficiently, without forcing companies to scrap large volumes of pre-printed packaging - a move that could result in enormous wastage amounting to roughly ₹2,000 crore due to the massive inventory that is readily held across the supply chain.
Consumer Affairs Minister Pralhad Joshi said the move aims to match any price movement strictly to tax changes and to preserve transparency for consumers, noting the importance of clear public communication on revised prices.
The Fast-Moving Consumer Goods (FMCG) distributors’ fraternity welcomed the step as one that should ease operations for retailers and distributors while helping consumers identify updated prices. The ministry’s instruction also reiterates that the original MRP must remain displayed and not be overwritten when companies apply revised price stickers or stamps.
The latest directive mirrors a precedent following the rollout of the GST regime in 2017 when the centre allowed firms to paste new price stickers on unsold packaged goods and extended that permission through March 2018 to accommodate multiple rounds of rate changes and to minimise packaging waste.
The present move is framed similarly as a practical compliance measure to smoothen the transition to the revised GST slabs and to reduce environmental and commercial losses while safeguarding consumer interests.
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