Companies asked to revise MRP on unsold stock

The government on Tuesday directed manufacturers and importers to declare revised maximum retail prices (MRP) on unsold stock to reflect changes in goods and services tax (GST) rates, with the deadline set for December 31 or until stocks are exhausted, whichever is earlier.

The directive comes as the government has reduced GST on various products and services, which will come into effect from September 22.

“As per the new GST rates, manufacturers, packers and importers can revise the MRP on unsold stock until  December 31, 2025 (or until stock lasts),” Union Food and Consumer Affairs Minister Pralhad Joshi said on X.

The minister emphasised that the revised prices must reflect GST changes only. “Any increase or decrease in price can only match the tax change,” Joshi said.

According to the directive, the new MRP should be declared with a sticker, stamp or online print, while ensuring the original MRP remains visible.

The government has also mandated that manufacturers, packers or importers make at least two advertisements in one or more newspapers regarding the price revision.

They must also inform dealers and state/central government officials about the change in prices of such packages.

Companies are required to inform consumers through advertisements and public notices. “This measure ensures transparency and protects consumer interests,” Joshi added.

The government has clarified that packaging material or wrappers that could not be exhausted prior to the GST revision may be used for packing until December 31 or until such stock is exhausted, whichever is earlier, after making corrections in MRP on account of GST changes.