Use stickers to show revised MRP on old stocks: Government
“This order is applicable only for goods which have seen a downward revision in their prices after new GST rates were announced last week,” a senior govt official said.
“This order is applicable only for goods which have seen a downward revision in their prices after new GST rates were announced last week,” a senior government official said on Friday. “Many of these products are currently being sold at higher prices in the market. We want to ensure that the benefit of tax reduction is passed on to the consumers,” the official said.
The GST Council had last week cut GST on several goods. A range of white goods under the 28% tax slab have been brought under the 18% category, while sanitary napkins, earlier under the 12% slab, have been exempted from tax.
The revised tax rates came into effect from Thursday midnight. “This relaxation will be applicable in the case of unsold stocks manufactured or packed or imported where the MRP would reduce due to the reduction in the rate of GST with effect from 27th July,”" said a letter issued to state legal metrology departments by the consumer affairs ministry on Friday. New MRP can be displayed by way of online printing, or pasting stickers alongside old MRP of the product till December 31, the notification said.
A similar directive was issued after GST rates of 200 goods were slashed in November last year. Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT), however, said manufacturers have failed to pass on the benefits of reduction in GST rates in the past. He said manufacturers should be mandated to register MRP of their products before and after rate cuts with the GST Council “to ensure that consumers actually benefit from such decisions”.
The consumer affairs ministry also said any packaging material or wrapper that could not be exhausted by the manufacturer or packer or importer, may be used up to December 31 after making corrections in the required MRP by way of stamping or putting stickers or online printing. In an instance where the price of a pre-packaged commodity has seen an upward revision, the same has to be notified to the department of consumer affairs and also advertised in national newspapers by the manufacturers.