Revised GST guidelines: Government abolishes advertising regulation, simplifies guidelines for price adjustments
The government has announced steps to ease compliance requirements for manufacturers, packers, and importers of pre-packaged commodities as the new GST rates implementation date approaches.
According to the latest advisory, companies can continue to use old packaging or wrappers printed with pre-GST Maximum Retail Prices (MRPs) until March 31, 2026, or until stocks are exhausted, whichever comes first. This extension in the use of old packaging aims to ensure a speedy implementation of the price cuts.
Companies have been directed to take immediate measures to sensitize dealers, retailers, and consumers about GST-linked price revisions. These sensitization efforts can be done through electronic, print, and social media. Companies will now send circulars about the revised prices to wholesale dealers and retailers, and these circulars must be endorsed to the Director of Legal Metrology at the Centre and to Controllers of Legal Metrology in all States and Union Territories (UTs).
Affixing revised price stickers on old stock is not mandatory according to the advisory. Companies can make corrections in MRPs through stamping, stickers, or online printing. There is no requirement to publish advertisements in newspapers while declaring revised prices. However, companies are allowed to use old packaging or envelopes manufactured before September 22, 2025, until March 31, 2026, or until their stocks are exhausted.
Finance Minister Nirmala Sitharaman has predicted a potential Rs 2 lakh crore consumption boost from GST reforms. The advisory is aimed at ensuring a smooth transition to the new GST rates and minimising disruptions for businesses and consumers.
It is important to note that companies are not required to affix revised price stickers on unsold pre-packaged commodities or unused packaging material, but can choose to do so if they wish. This voluntary approach allows companies to manage their inventory and costs effectively while complying with the new GST rates.
The government's efforts to ease compliance requirements for pre-packaged commodities are a positive step towards facilitating a seamless transition to the new GST rates. Businesses and consumers can now prepare for the implementation of the new GST rates with greater confidence and certainty.
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