Govt allows companies to display revised MRP on old unsold packs

MUMBAI: Govt has allowed companies to display revised MRPs on old packs of products that remain unsold, in a relief to packaged goods manufacturers who were awaiting clarity on labelling and packaging to devise strategies around passing on GST benefits to consumers.

Firms will however, have to clear their old stock by Dec 31. In a notification issued on Tuesday, the consumer affairs ministry said that manufacturers, packers or importers of pre-packaged commodities will be permitted to display revised MRPs till Dec 31 or until stocks are exhausted, whichever is earlier.

Govt has also directed companies to declare the changed retail sale price only by way of stamping, putting stickers or online printing. The move will allow companies to reflect the correct sale price to consumers after adjustments in GST slabs and also enable smooth transition to the new regime which kicks in from Sept 22.

Companies will have to continue displaying original MRPs and cannot overwrite revised MRPs on them. They have also been asked to inform consumers through ads and public notices.

"Any increase or decrease in price can only match the tax changes," food and consumer affairs minister Pralhad Joshi said in a post on X.

FMCG distributors' association said that the step will help consumers in identifying the correct updated prices and prevent unnecessary confusion in the market. "We applaud this move as it balances transparency, consumer interest, and ease of operations for distributors and retailers," said Dhairyashil Patil, national president at The All India Consumer Products Distributors Federation (AICPDF).

While most FMCG products tend to have a shorter shelf life, the move will help in tackling stock of products that have a longer shelf life.