Government Relaxes Pricing Rules: Impact on Businesses and Consumers

The Consumer Affairs Ministry has relaxed packaging and pricing rules for companies after GST rate reductions effective September 22. The new rules allow manufacturers to use revised price stickers optionally, eliminating the need for newspaper publications. Companies are urged to inform stakeholders of changes proactively.

The Consumer Affairs Ministry enacted changes to packaging and pricing regulations after the reduction of GST rates on September 22. These measures aim to ease the compliance load on companies while ensuring consumers benefit from lower taxes.

The Department of Consumer Affairs issued guidance permitting manufacturers and importers to voluntarily affix revised price stickers on unsold inventory produced before the GST changes, as long as the original maximum retail price (MRP) remains visible.

With alterations to Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011, companies no longer need to publish revised MRPs in newspapers, as previously required. Instead, they must circulate updated price lists to dealers and retailers, informing both central and state legal metrology officials accordingly.

(With inputs from agencies.)