The recent announcements on GST rate rationalisation have once again highlighted the practical challenges faced by businesses dealing in pre-packaged commodities. Whenever GST rates go up or down, manufacturers and traders are left with unsold stock already carrying printed Maximum Retail Price (MRP). This creates confusion for both sellers and consumers.
To address this, the Department of Legal Metrology has issued a new circular dated 09th September 2025 permitting companies to revise MRPs on unsold stock as on the date of change without discarding old packaging. This ensures a smooth alignment between GST reforms and real-world business practices, while safeguarding consumer interest.
MRP Revision Allowed – Manufacturers, packers, and importers can revise MRPs to reflect GST changes, but the adjustment must exactly match the revised tax rate.
How to Revise – Prices can be updated using stickers, stamping, or online printing. The original MRP must remain visible.
Validity – This relaxation is available until 31st December 2025 or until old stock is sold.
Mandatory Disclosure – Companies must notify central and state Legal Metrology authorities and publish advertisements in at least two newspapers.
For consumers, it guarantees fair pricing and immediate benefits of lower GST rates. For businesses, it avoids wastage of packaging material, reduces compliance costs, and eases the transition into GST 2.0 reforms.
1. Can retailers revise the MRP?
No, only manufacturers, packers, or importers are permitted.
2. What if MRP is not updated?
Overcharging consumers may attract penalties under Legal Metrology laws. Also invites action from GST department for anti profteering.
3. Is upward revision possible?
Yes, but only to the extent of GST rate increases.
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