GST 2.0: Govt Paves Way For Price Cuts On Existing Stocks As Well From Sept. 22

In a major relief for manufacturers, distributors, retailers and consumers, the government has issued a circular that allows smooth passage of tax rate cuts on existing stocks as well from Sept. 22.

"Declaration of the changed retail price (MRP) shall be made by stamping or by putting sticker or online printing, as the case may be," the Consumer Affairs Department stated in its circular issued on Tuesday.

The original maximum retail price shall be written on the packages, and the revised prices shall not overwrite it, the circular clarified.

To facilitate the revision of selling price, the companies will have to mandatorily publish details of the new pricing through newspaper advertisements. They will also be required to issue notices in this regard to dealers and distributors, and the legal metrology department.

The Consumer Affairs Department, under the Legal Metrology Act, has also permitted companies to continue with old MRP, labelling and packaging till Dec. 31, 2025. However, corrections are required to me made in the MRP due to the GST cuts by way of stamping, putting sticker or online printing, it clarified.

(This is a developing story)