press trust of india
New Delhi, July 4: The government Tuesday warned manufacturers of legal action if they do not print the revised MRP post rollout of GST.
Food and Consumer Affairs Minister Ram Vilas Paswan said the government has given manufacturers time till September to reprint the revised maximum retail price (MRP).
In a series of tweets, Paswan said prices of some commodities have fallen, while some have increased with the implementation of GST.
“Fall in prices due to lower GST should be passed on to consumers. …The government will take legal action against vendors not declaring revised MRP after GST,” he said. “The revised rates should be displayed on commodities so that consumers are aware what is the MRP of each item after GST,” he added.
The government has allowed use of stickers with revised rates, alongside the printed MRP for pre-packaged items, till September to reflect the new selling price.
The clarification from the government came as several businesses were left with huge unsold inventories before the GST kicked in July 1. The unsold items had an MRP which included all taxes of pre-GST era but with the implementation of new regime, some of the final retail prices have undergone changes because of increase or decrease in tax incidences.
“The old maximum retail price (MRP) will have to be necessarily displayed on the unsold inventories and the new rates can be reflected by way of pastable stickers alongside,” Consumer Affairs Secretary Avinash Srivastava said.
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.
However, after September 30, the printed MRP on pre-packaged commodity will have to necessary include the GST rate and no add-on stickers would be allowed. “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.
“The original MRP shall continue to be displayed and the revised price shall not overwrite on it,” the notification added.
For reducing 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”.
The notification also said the packaging material or wrapper which could not be exhausted prior to July 1 may be used for packing of material till September 30, 2017, or till such date the packing material or wrapper is exhausted, whichever is earlier.
This will be permissible after the manufacturer or importer or packer makes correction in the retail sale price on account of the GST implementation by way of stamping or putting sticker or online printing.
