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Impact of Revised GST Laws

Impact of Revised GST Laws on The MRP of Pre packed Commodities

MRP is the maximum retail price inclusive of all taxes. Accordingly MRP is the maximum retail sale price including all the taxes levied on the consumer, which includes GST. It could be concluded that GST is included in the MRP and could not be charged over and above the MRP from the consumers. As per the provisions of Legal Metrology Packaged Commodity Rules, 2011 the retail sale price of the packages should be clearly indicative that the maximum retail price is inclusive of all taxes. Further manufacturers of packaged commodities will have to stamp or put stickers declaring details of the correct month and year of manufacturing and packing on the pre-packaged products.

Due to the introduction of change in the GST,  the government has declared some relaxation under the Legal Metrology Packaged Commodity Rules, 2011 exercising the powers conferred by rule 33(1) of the Legal Metrology Packaged Commodities Rules, 2011, the Central Government hereby permits the manufacturers or packers or importers of pre-packaged commodities to declare the revised retail sale price (MRP) on the unsold stock manufactured/ packed/ imported prior to 01st July 2017, after inclusion of the increased amount of tax due to GST, if any, in addition to the existing retail sale price for three months w.e.f 01st July 2017 till 30th September, 2017.

Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing, as the case may be, after complying with the following conditions:

  • 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 the tax if any, or in the case of imposition of fresh tax, such fresh tax, on account of implementation of GST Act and Rules.
  • The original MRP shall continue to be displayed and the revised price shall not be overwritten on it.
  • Manufacturers or packers or importers shall make at least two advertisements in one or more newspapers in this regard and also by circulation of notices to the Director of Legal Metrology in the Central Government and Controllers of Legal Metrology in the States and Union Territories, indicating the change in the price of such packages.

Further also clarified that any packaging material or wrapper which could not be exhausted by the manufacturer or packer or importer prior to revision of GST, may be used for packing of material upto 30th September, 2017 or till such date the packing material or wrapper is exhausted, whichever is earlier after making corrections required in retail sale price (MRP) on account of implementation of G.S.T. by way of stamping or putting stickers or online printing, as the case may be.
DISCLAIMER :- The use of this website does not constitute the rendering of legal advice by the author to the reader. The above content is for the knowledge of readers, based on the above, the readers are advised to make any legal decisions but to put their reliance on respective legal professionals.

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