What you need to know about price stickers after GST ruling- Legal Metrology
After the implementation of GST on goods and commodities of all kinds, it was compulsory for businesses to incorporate GST prices on pre-packaged goods. But recently GST rates were reduced on some products in June 2018.
The controller of GST has issued a permit to use price stickers for indicating the revised retail sale price of pre-packaged commodities after the GST rate changes with effect from 27th July 2018. These stickers are permitted to ensure that the advantages of reduction in GST rates reach the consumers.
Revised MRP Disclosure
The revised MRP must be declared by putting a sticker or by way of stamping or online printing. The original MRP must be displayed to show the comparison and reduction. Companies must also advertise the price change to notify the dealers and other stakeholders.
The Legal Metrology Department relaxed the revised MRP printing directly on the packaging by permitting the disclosure of new price through stickers after the cut in GST rates.
The permission to affix additional prices on the pre-packaged goods by way of stamping or through adding stickers was granted under the rule 33(1) and rule 6(3) of Legal Metrology Rules, 2011 for Packaged Commodities.
Here are some points mentioned in Legal Metrology Controllers letter:
- The old prices before the GST reduction and the new prices after the reduction of GST rates should be visible clearly on the labels, stickers or stamps on the packaging.
- The relaxation in printing the revised prices directly on the packaging is relaxed in case of unsold stock of commodities that have been manufactured, imported or packed when the GST rates were reduced w.e.f. 27th July 2018.
- The relaxation in printing the revised prices directly on the packaging will be applicable up to 31st December 2018.
- Any packing wrappers or material can be used till up to 31st December 2018 or till the packing material is exhausted – whichever is earlier after the price correction is mandated on account of GST rate reduction.
- The manufacturers, importers or packers must ensure that the reduced MRP on account of GST is passed on to the consumers and must assist and cooperate with the Local GST officers.
It might be a little complicated and cumbersome to keep up with revised MRP declaration post GST rate reductions and the subsequent notifications. In an effort to ensure your organization doesn’t suffer penalty, a Legal Metrology Registration consultant helps you understand and keep up with all the mandatory rules after GST rate changes ensuring that your business runs smoothly.