Govt allows manufacturers to revise MRP on unsold stock due to GST rate changes

India's Department of Consumer ANairs on Tuesday allowed manufacturers to revise MRP on unsold stock due to GST rate revsion. The move is set to provide huge relief to consumers and the companies.

Manufacturers, packers, and importers of pre-packaged commodities will have

to declare revised retail sale prices (MRP) on unsold stock manufactured or

imported prior to the revision of GST rates. This decision, announced on September 9, 2025, aims to accommodate the recent changes in GST rates.

The revised MRP can be declared by stamping, putting a sticker, or online printing, provided the original MRP continues to be displayed and the revised price does not overwrite it, the government said in its order. The diNerence between the original and revised prices should not exceed the extent of the tax increase or decrease, as per the government.

"Manufacturers, packers, and importers are required to make at least two advertisements in one or more newspapers and circulate notices to dealers and the Director of Legal Metrology in the Central Government and Controllers of Legal Metrology in States and Union Territories, indicating the change in price."

This permission is valid until December 31, 2025, or until the stock is exhausted, whichever is earlier. Additionally, packaging materials or wrappers that were not exhausted before the GST revision can be used until December 31, 2025, or until the material is exhausted, after making necessary corrections to the MRP, the ministry said.

Consumer goods companies were seeking an extension of the September 22 start date for the revamped GST, citing logistical challenges in managing existing stock priced under the outgoing regime. They had also sought clarity on whether price cuts can be passed in the form of increased grammage, especially in low-unit packs.

In addition, distributors were also seeking clarity from fast-moving consumer goods (FMCG) companies on how they planned to handle inventory that remains unsold before the new GST slabs come into eNect. Companies said a transition will need more time, as products already in warehouses and on retail shelves are priced under the current GST framework that's to be withdrawn. This could lead to dual inventory complications in pricing, they said. Most companies had also built up higher-than-usual inventory levels ahead of the upcoming festive season, leading to increased manufacturing, particularly for select gifting packs, industry executives said.

In 2017, several companies had received tax demands raised by the National Anti-Pro\teering Authority for allegedly not passing on bene\ts to the end consumer after the rollout of GST that year. "With these tax reductions, we will respond quickly to support retailers nationwide," said Ahmed Abdel Wahab, general manager at chocolate maker Mars Wrigley India.