Relaxation given by Govt. till 31 March 2018 regarding Display of Revised MRP under GST on Unsold Stock of 30 June 2017 (pre-GST), including due to GST Rate reduction on such items
Govt. had announced on 23 Dec. 2017 about relaxation of Requirement under GST laws for Display of Revised MRP due to reduction of GST Rates on Unsold Stock as of 30 June, 2017 (pre-GST), upto 31 Mar. 2018. However, as per News Reports (dt. 16 Mar. 2018), it’s unlikely that Govt. will further extend this deadline for selling pre-GST stock with revised maximum retail price (MRP) stickers.
Earlier also this deadline was extended, as under:
A. Relaxation upto 31 Dec. 2017 for display of revised MRP due to reduction of GST Rates (Press Release dt. 17 Nov. 2017)
In view of reduction of GST rates on certain specified items, the Ministry of Consumer Affairs, Food & Public Distribution has granted permission under rule 6(3) of the Legal Metrology (Packaged Commodities) Rules, 2011, to affix an additional sticker or stamping or online printing in respect of such items for declaring the reduced MRP on the pre-packaged commodity, i.e. permission/ relaxation granted to display revised MRP due to reduction of rates of GST up to 31st December, 2017. In this case also, the earlier Labelling/ Sticker of MRP will continue to be visible. This relaxation will also be applicable in the case of unsold stocks manufactured/ packed/ imported after 1st July, 2017 where the MRP would reduce due to reduction in the rate of GST post 1st July, 2017.
B. Further 3 months Relaxation upto 31 Dec. 2017
Revised MRP of pre-packaged commodities was required to be disclosed by the manufacturers or packers or importers, initially for three months upto 30 Sept. 2017, by way of stamping, sticker, online printing, etc. to accommodate use of un-exhausted packaging material/ wrappers and now the Govt. has announced further extension of this timeline by 3 months upto 31 Dec. 2017.
C. Initial Relaxation upto 30 Sept. 2017
Govt. allows change in MRP (through stamping, stickers or online printing) on unsold stock as on 30 June 2017, i.e. prior to GST implementation w.e.f. 1 July 2017, for clearance till 30 Sept. 2017.
On account of implementation of GST w.e.f. 1st July, 2017, there may be instances where the retail sale price of a pre-packaged commodity is required to be changed. In this context, Govt. has allowed the manufacturers or packers or importers of pre-packaged commodities to declare the change in retail sale price (MRP) on the unsold stock manufactured/ packed/ imported prior to 1st July, 2017 after inclusion of the increased amount of tax, due to GST, if any, in addition to the existing retail sale price (MRP), for three months. w.e.f. 1 July 2017 to 30 Sept. 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.
It is also clarified that ‘for reducing the Maximum Retail Price (MRP), a sticker with the 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, as the case may be, on the label of the package’.
Use of unexhausted packaging material/wrapper has also been allowed upto 30th September, 2017 after making the necessary corrections. Consumer protection has always been a major thrust area of Government. The Legal Metrology (Packaged Commodities) Rules, 2011 have been framed to regulate the pre-packaged commodities. Rule 6 of the said rules provides that every package shall bear thereon the following declarations:
i) Name and address of the manufacturer/ packer/ importer;
(ii) Common or generic name of the commodity contained in the package;
(iii) Net quantity, in terms of standard unit of weight or measure or in number;
(iv) Month and year of manufacture/ pack/ import;
(v) Retail sale price in the form of Maximum Retail Price (MRP) Rs….. Inclusive of all taxes;
(vi) Consumer care details.