Govt allows manufacturers to use existing packaging with revised MRP to reflect GST rate changes

Declaration of the changed MRP shall be made by way of stamping or putting sticker or online printing.

In a significant relief to the industry, the Department of Consumer Affairs (DCA) has allowed manufacturers, packers and importers to use existing packaging for selling stocks till December 31, 2025. The industry, however, will have to print the revised retail sale price (MRP)—with the new GST rates effective September 22nd—on the existing packaging.

"Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing, as the case may be," the circular by DCA said, seen by Moneycontrol.

The DCA has asked industry to ensure that the original MRP shall continue to be displayed (on the packaging) and the revised price shall not be overwritten on it. Also, if the tax has increased, the new price cannot be higher than the original price plus the exact amount of the tax increase; and if the tax has decreased, the new price must reflect that reduction and not be higher than the price after the tax cut.

Additionally, the DCA has asked the industry—manufacturer, packers and importers—to place at least two advertisements in one or more newspapers to inform the public about the price change.

Experts say the government's decision to allow manufacturers, packers, and importers to use existing packaging material by affixing revised prices to reflect the recent GST rate changes is a very timely move. "This measure provides dual benefits, it ensures that consumers are transparently informed of revised prices, and while at the same time, it helps industries avoid the large-scale wastage of packaging material," said Saurabh Agarwal, Tax Partner, EY India.

From an industry perspective, this extension till December 31, 2025, provides much-needed operational flexibility, particularly for FMCG, pharmaceutical, and other sectors with large packaging inventories, he said.