Post GST rollout, new rules for price tags: 8 things you should know
The government today warned that legal action will be initiated against manufacturers for not printing the revised MRP post rollout of the GST. Food and Consumer Affairs Minister Ram Vilas Paswan said the government has given three months time till September to reprint the revised maximum retail price (MRP) with the implementation of the landmark Goods and Services Tax (GST).
In a series of tweets, Paswan said that 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 given time till September to reprint the revised MRP under the Packaged Commodities Rule," he said.
Earlier today, Consumer Affairs secretary Avinash Srivastava said that Manufacturers can sell old stock, under new MRP, by putting fresh sticker till September 30.
However, if there is an increase in price, then the manufacturer has to first advertise the new price along with the old price of the product in atleast two newspapers before selling it under the new MRP.
* Government allowed use of stickers with revised rates, alongside the printed MRP for pre-packaged items, for three months to reflect changes in selling price.
* 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
* 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.
* 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 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
* The original MRP shall continue to be displayed and the revised price shall not overwrite on it
* 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.
* 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, which ever is earlier.