Stickers on existing stock must show GST cut: Govt to FMCGs


NEW DELHI: The government has told consumer goods firms and industry stakeholders that new price tags on existing stocks in the trade pipeline should clearly show the difference that the recent cut in GST has made. The metrology division under the department of consumer affairs, which oversees matters related to measurement and labelling, has instructed the companies to this effect.

“Permission is granted under the legal metrology rules to affix an additional sticker or stamping for declaration of reduced MRPs (maximum retail prices). Earlier labelling of MRP will continue to be visible,” it said in a November 16 letter that ET has seen.

Soon after the GST cut on 178 products last week, consumer affairs minister Ram Vilas Paswan said firms had been allowed to “affix an additional sticker or stamping or online printing for declaring the reduced MRP on the prepackaged commodity”.

The metrology division said the order on carrying both prices will be applicable till December 31. It has allowed the new MRP to be printed on stickers following the cut in GST, relaxing the rule that it has to be printed directly on the packaging.

“This will empower consumers and make them aware of the benefits being passed on to them,” said Grant Thornton India partner Dhanraj Bhagat. “But stakeholders need to ensure that stickering is done in a scrupulous manner and leaves no room for misrepresentation.”


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