What MRP Rules Government Announced under GST?

On Tuesday (July 4, 2017), the government has announced rules about maximum retail price (MRP) for goods under the Goods & Services Tax (GST) regime rolled out at Friday and Saturday midnight.  There has been a lot of confusion among both retailers and the consumers regarding the change in MRP under GST.

Under GST regime, if a price of an item has risen, it is the duty of the importer/packer/manufacturer to give an advertisement in two newspapers about new price and have a revised sticker on packaging, according to Avinash Srivastava, Department of Consumer Affairs Secretary. They have to show both old and new MRP on the packaging.

“If anyone doesn’t comply with new rules, legal action would be taken,” Ram Vilas Paswan, Food & Consumer Affairs Minister tweeted.

If they don’t furnish the revised MRP of a product under GST, the shopkeeper might be in legal trouble. Ram Vilas Paswan, Food & Consumer Affairs Minister extended dispensation for 3 months to all the traders and manufacturers till September 30 on old stock they have and they can easily continue trade according to the rules released on Monday.

For products whose prices have been slashed under the new tax rule, the manufacturers don’t have to publish newspaper ads. However, it is a must to mention the sticker about the new MRP. They also have to show the old prices.

Packing material is very costly. Hence traders can use their current stock till September by putting new sticker. The government will also conduct “Masterclass” on GST for all the stakeholders, along with citizens as hour-long program for up to 6 days which will telecast live on Doordarshan. The live telecast can also be accessed online.

The government is paying close attention to the supply and price post GST rollout. The monitoring committee will have 15 top secretaries to monitor GST and meet every Tuesday. The government again said they can expect the teething problems as GST rolls out. They are hoping for things to be cleared soon and make efforts to aware all the stakeholders.

Since independence, GST is the most ambitious tax reform in India and subsumes up to a dozen state and central taxes levied on services and goods to bring the country under a uniform regime. Implemented by Modi government, this new tax regime will be working for the next 15 years and add around 2% to the GDP of the country.

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