Govt Issues Advisory on GST Price Revisions, Eases Compliance for Industry

The Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution, has issued a revised advisory to guide manufacturers, packers, and importers following the revision of Goods and Services Tax (GST) rates effective 22nd September 2025. The advisory, issued under the powers of Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011, seeks to strike a balance between ease of doing business and consumer protection, ensuring that the benefits of reduced GST are passed on to consumers without overburdening industry with unnecessary compliance.

Optional Price Stickering on Old Stock

The advisory clarifies that companies may voluntarily affix additional revised price stickers on unsold packaged goods manufactured before 22nd September 2025. Importantly, the original Maximum Retail Price (MRP) printed on the package must remain visible and not be obscured.

Officials emphasized that the Rules do not mandate re-stickering, making it purely optional for businesses. This move gives flexibility to industry players while ensuring price transparency for consumers.

Simplified Disclosure Requirements

Previously, Rule 18(3) required companies to publish revised MRPs in at least two newspapers, which was often seen as cumbersome and costly. The latest advisory waives this requirement.

Instead, companies are now required to:

• Circulate revised price lists to wholesale dealers and retailers.

• Send copies of these revised lists to the Director of Legal Metrology (Central Government) and Controllers of Legal Metrology in States/UTs.

This change is expected to streamline compliance, reduce procedural burden, and enable faster updates in the distribution chain.

Extended Use of Old Packaging Material

Acknowledging the cost and environmental implications of discarding old packaging, the government has allowed companies to use old packaging material or wrappers printed before the GST revision until 31st March 2026, or until existing stocks are exhausted, whichever is earlier.

On such packaging, manufacturers are permitted to correct MRPs using:

• Stamps

• Stickers

• Online printing

This flexibility will help businesses adjust smoothly to the revised GST rates without supply chain disruptions.

Encouraging Consumer Awareness

Beyond regulatory relaxations, the advisory underscores the importance of consumer communication. Manufacturers, packers, and importers have been encouraged to proactively inform dealers, retailers, and end consumers about revised GST rates and their impact on product pricing.

The government has advised the use of multiple communication channels, including:

• Electronic media

• Print media

• Social media platforms

Such efforts will ensure that consumers are well-informed and can benefit directly from GST rate reductions.

Balancing Industry Ease and Consumer Rights

Officials from the Department of Consumer Affairs highlighted that the new framework reflects a balanced approach:

• For industry: It minimizes procedural hurdles and reduces compliance costs.

• For consumers: It guarantees price transparency and ensures that tax reductions are passed on fairly.

By easing compliance while safeguarding consumer rights, the revised advisory reinforces the government’s commitment to ease of doing business and consumer-centric governance.