New Packaging Rules: After the GST cut, the government has taken another big decision. What will directly impact you?

Following the reduction in GST rates, the government has taken another major decision. It has simplified packaging rules. The Ministry of Consumer Affairs on Thursday relaxed packaging and pricing rules for companies. The reduction in Goods and Services Tax (GST) rates will come into effect from September 22nd. The aim of simplifying packaging rules is to reduce compliance burden and ensure consumers benefit from lower taxes.

The Department of Consumer Affairs has issued an advisory allowing manufacturers, packers, and importers to voluntarily affix revised price stickers on unsold goods produced before September 22nd, provided the old maximum retail price (MRP) is visible.

Re-stickering is optional
The government stated that re-stickering is optional and not mandatory for companies. This exemption is granted under Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011. Companies will no longer be required to publish the revised MRP in two newspapers as previously required under Rule 18(3).

Instead, manufacturers and importers will only need to send the revised price list to wholesalers and retailers. Copies will be sent to the Central and State Legal Metrology Authorities.

Advice given to companies:
In addition, companies can use existing packaging material published before the GST amendment until March 31, 2026, or until stocks last, whichever is earlier. Companies can correct the maximum retail price (MRP) on such packaging through stamping, stickers, or printing.

The Ministry has advised companies to inform dealers, retailers, and consumers about the revised GST rates through electronic, print, and social media.

The advisory states, "This step strikes a balance between ease of doing business and consumer protection," ensuring that industries are not overburdened and consumers receive the intended benefits of the GST reduction.

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