Do not overwrite the new MRP on the old one, says Ministry of Consumer Affairs, Food and Public Distribution to manufacturers, packers or importers of pre-packaged commodities
In a recent Circular dated 4th July, 2017, the Ministry of Consumer Affairs, Food and Public Distribution (“Ministry”) has issued clarifications around the impact of Goods and Services Tax (“GST”) on unsold stock of pre-packaged commodities.
Key highlights of the Circular:
- The manufacturers, packers or importers of pre-packaged commodities are permitted to declare the revised retail sale price (“MRP”) on the unsold stock manufactured / packed / imported prior to 1st July, 2017, after including the increased tax amount in addition to the existing MRP for a period of 3 months i.e. till 30th September, 2017.
- The revised MRP must be declared by way of stamping or putting sticker or online printing.
Additionally, in this regard, the following conditions must be adhered to:
- The difference between the MRP originally printed on the package and the revised price should not be higher than the extent of increase in tax, if any. In case of imposition of fresh tax, the difference should not be more than the value of such fresh tax.
- The original MRP must continue to be displayed, and the revised price should not be overwritten on it.
iii. The manufacturers, packers or importers must make at least two advertisements in one or more newspapers in this regard, and circulate notices to the dealers and to the Director of Legal Metrology in the Central Government and Controllers of Legal Metrology in the States and Union Territories, indicating the change in price of such packages.
III. It is further clarified that under Rule 6(3) of Legal Metrology (Packaged Commodities) Rules, 2011 “for reducing the Maximum Retail Price (MRP), a sticker with the revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer or importer, as the case may be, on the label of the package.”
- The Ministry has also provided an extension to the manufacturer, packer or importer to use the packaging material or wrapper which could not be exhausted prior to 1st July, 2017 for packing material upto 30th September, 2017, or till such date the packing material gets exhausted – whichever is earlier.
However, such packaging material / wrapper can be used only after making corrections in the MRP on account of implementation of GST by way of stamping, putting sticker or online printing.