To bring relief to businesses that had unsold stocks of goods post GST implementation, the government has finally issued a clarification. The government has said that the unsold stocks of goods, can be used with stickers of revised rates alongside the printed MRP, for three months. But after September 30, the printed MRP on pre-packaged commodity will have to necessary include the GST rate and no add-on stickers will be allowed.
The old maximum retail price (MRP) will have to be displayed on the unsold inventories and the new rates can be reflected by way of pastable stickers alongside, Consumer Affairs Secretary Avinash Srivastava said.
“The original MRP shall continue to be displayed and the revised price shall not overwrite on it,” a government notification said.
The clarification from the government came as several businesses were left with huge unsold inventories before the GST kicked in from July 1. The unsold items had an MRP, which included all pre-GST taxes. With the implementation of new tax reform of the final retail prices have undergone changes.
On items where the price has to be increased for unsold stocks, the manufacturer or packer or importer will have to give at least two advertisements in two or more newspapers informing people about the change.
“The central government hereby, permits the manufacturer or packer or importer of pre-packaged commodities to declare the changed retail sale price (MRP) for three months from July 1-September 30. Declaration of the changed MRP shall be made by way of stamping or putting sticker or online printing,” a government notification said.
The difference between the retail sale price originally printed on the package and the revised price “shall not, in any case, be higher than the extent of increase in tax” or in the case of imposition of fresh tax on account of the implementation of the GST, it said.
Fore reducing the MRP, a sticker of revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer or importer on the label of the package.
(With inputs from PTI)