GST effect: Sell goods at revised MRP, says Govt to manufacturers

GST effect: Sell goods at revised MRP, says Govt to manufacturers

GST effect: Sell goods at revised MRP, says Govt to manufacturers

He said, manufacturers have been allowed to clear the unsold stocks by September with new MRP.

"Suppose, after GST the product has come under a new tax bracket".

Manufacturers will face punishment, including jail term, for not printing revised price on unsold and new goods as per amended consumer protection laws.

Non-compliance of this will attract a fine of Rs 25,000 for first time offence, '50,000 for second time and up to Rs 1 lakh penalty for third offence onwards and even imprisonment of up to one year.

However, the onus of changing the rates lies with the manufacturer, not the retailer or vendor, said an official from the Telangana legal metrology department.

He did not share as to who in an errant company could be jailed - the wording of the order is "principal person in default". "The Act has now been amended to prohibit companies from levying two different MRPs for a single product unless done under legal provisions", Amitabh Gupta, Controller of Legal Metrology, told the Times of India.

Under the GST regime, he said some prices of goods have fallen and some have risen.

A government notification has now allowed such unsold pre-packed items to be marketed to consumers with an add-on sticker indicating the revised price. The new rates, he added, should be communicated to his ministry and also advertised for better awareness of consumers. The companies are not going to release all the unsold items in one go. "However, strict vigil is in place and we will punish violators". "They need to inform consumers how much less or more they are paying", Paswan said. In a joint statement, consumer affairs and finance ministries clarified that in the circular the phrase "the increased amount of tax due to GST", if any means "the effective increase in the tax liability calculated after taking into consideration extra availability of input tax credit under GST (including deemed credit available to the traders under CGST)".

"The size of words and numbers for mandatory declarations has been increased so that a consumer can easily read", Paswan said.

He said his ministry has also set up a committee to address the grievances of consumers on the implementation of the GST.

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