Can You Change MRP on Old Stock After GST Cuts? New Rules Explained

Can You Change MRP on Old Stock After GST Cuts? Here's What You Must Know

When the GST Council slashed tax rates this Diwali, businesses across India had to scramble. Stock on shelves had old tax-inflated prices, packaging wasted, and consumers expected lower prices. To ease this transition, the Ministry of Consumer Affairs stepped in—bringing relief and clarity.

What’s the New Rule on Revising MRP for Unsold Inventory?

Here's what the latest legal update allows:

1. MRP adjustments are now permitted for unsold, pre-packaged goods that have outdated GST rates.
2. You can update the price via sticker, stamp, or online printing, until 31 December 2025 or until the stock sells out—whichever comes first.

Important conditions:

Here’s exactly which periods are affected:

1. The original MRP must remain visible—don’t erase or overwrite it.
2. The new MRP can only reflect the GST shift—you can't add an extra margin.
3. Businesses must publish at least two notices in newspapers and inform the state/central Legal Metrology departments about the price changes.

Why This Matters

This directive is a win-win:

1. Manufacturers and retailers avoid throwing out inventory and wasting packaging.
2. Consumers are directly given the benefit of lower GST—it’s not just theoretical savings.
3. Legal protections are in place to prevent profiteering and ensure compliance.

How Businesses Can Quickly Adapt: A Step-by-Step Guide

Step	Action Required	Why It Matters
Identify unsold inventory with old GST-based MRP	Know what packaging and stock need revision	Helps in accurate planning
Update MRPs via sticker/stamp/print	Apply changes without repackaging	Saves time and cost
Keep the old MRP visible alongside the new one	Validates transparency	Complies with legal rules
Calculate MRP change only based on GST difference	No added margins	Ensures fair pricing
Inform stakeholders via ads	Notify public and authorities	Regulatory compliance
Monitor stock till it's cleared or by Dec 31, 2025	Stay compliant throughout	Legal safety

What Experts & Industry Are Saying

Many FMCG firms welcomed the move, calling it a "timely operational relief." It prevents discarding packaging material, which could cost thousands of crores, and allows a smoother transition to new GST rates.

Consumer rights groups also praised the measure—highlighting that it keeps businesses accountable. In past GST overhauls, some firms used rate changes as excuses to hike prices. Now, overshooting the tax change can attract stiff penalties for unfair practice.

Key Takeaways

1. Yes, you can revise MRPs on unsold stock with old GST pricing.
2. Use stickers, stamps, or print, but keep the original MRP visible.
3. The price change must equal only the tax difference—no extra profits.
4. Announce the changes publicly and inform the legal weights & measures authorities.
5. Deadline: 31 December 2025 or until stock is sold.

Final Thoughts

This MRP revision directive ensures fairness to consumers and operational flexibility for businesses during the GST shake-up. It avoids waste, promotes transparency, and keeps all stakeholders informed.

Want to ensure your business transitions smoothly? Or need help with MRP compliance, advertising requirements, or communication templates? Let me know—I'd be happy to assist!