New GST price rules: Govt waived off ad rule, eases implementation of price revision norms
As the implementation date for the new GST rates approaches, the Government has announced a few more steps to ease compliance requirements for manufacturers, packers, and importers of pre-packaged commodities and ensure speedy implementation of the price cuts.
In its latest advisory, the government clarified that affixing revised price stickers on old stock is not mandatory. The advisory has also waived off mandatory publishing of revised MRPs in newspapers. Companies can now inform trade channels and authorities through circulars—a more practical and cost-efficient approach, according to tax experts.
No newspaper ads needed
The Ministry of Consumer Affair has waived the requirement to publish advertisements in two newspapers while declaring revised prices.
Instead, firms will now have to send circulars about the revised prices to wholesale dealers and retailers, with copies endorsed to the Director of Legal Metrology at the Centre and to Controllers of Legal Metrology in all States and UTs.
Awareness push for GST-linked price changes
Companies have been directed to take “immediate measures” to sensitise dealers, retailers and consumers about GST-linked price revisions. This can be done through electronic, print and social media.
The advisory further clarified that declaring revised unit sale prices on unsold pre-packaged commodities or unused packaging material is not mandatory. However, companies can voluntarily declare revised prices if they wish.
Revised sticker not mandatory
Earlier, the government had said that FMCG companies should affix a revised price sticker on unsold packages that are already in stock. The aim was to provide relief to industry bodies that might otherwise face the pricing burden of repacking old stock.
However, the government has now said that it will be voluntary for companies to affix a revised price sticker on unsold packages manufactured before September 22, 2025, provided the original declaration remains visible on the pack.
Packaging material can be used till March 2026
The government has also allowed manufacturers, packers and importers to use old packaging or wrappers printed with pre-GST MRPs until March 31, 2026, or until stocks are exhausted, whichever is earlier. Corrections in MRP can be made through stamping, stickers or online printing.