MRP Rules under GST

The government on Tuesday announced rules regarding MRP or maximum retail price for goods under the GST (Goods and Services Tax). There has been ample confusion among both consumers and retailers regarding how the MRP changes will reflect under GST.

Advertisements in 2 Newspapers about New MRP:

"Under the GST regime, if a price of a product has increased the manufacturer/ importer/ packer will have to give an advertisement in two newspapers about the new MRP and put a revised sticker on the packaging,", Both the new and the old MRP must show on the packaging.

For products whose prices have come down under the new tax regime, no newspaper advertisements would need to be published.

Govt. gives 3 month time:

The Government has given three month time till September to reprint the revised maximum retail price (MRP) with the implementation of the landmark GST.

Rules for Revising MRP:

The difference between the retail sale price originally printed on the package and the revised price “shall not, in any case, be higher than the extent of increase in tax” or in the case of imposition of fresh tax on account of the implementation of the GST, it said. “The original MRP shall continue to be displayed and the revised price shall not overwrite on it.