As the September 22 deadline for implementing the new GST rates approaches, companies and regulators are racing to ensure proper pricing and labelling of inventories. The Ministry of Consumer Affairs has directed firms to declare revised maximum retail prices (MRPs) on unsold stocks, in line with the rationalisation of GST rates.
Companies have been allowed to display revised MRPs until December 31, 2025, or until existing stocks are cleared. The ministry has clarified that revised MRPs must strictly mirror tax changes — prices cannot rise beyond the actual increase in tax, and must mandatorily fall where GST rates have been cut.
According to the directive, revised MRPs may be declared through stamping, stickers, or online printing, but the original MRP must continue to be visible and not overwritten.
Major FMCG players are already reworking their price structures. Nestlé India told TNIE it is finalising a company-wide pricing strategy and will announce revised prices soon. Dabur India declined to share details but hinted at cuts ahead of the festive season.
“As families prepare to celebrate with renewed enthusiasm, lower prices on personal care items will allow them to prioritise health and hygiene without compromising on quality,” said Mohit Malhotra, CEO of Dabur India.
Concerns remain, however, over profitability and the transition timeline. Ramesh C Juneja, Chairman of Mankind Pharma, had earlier said: “We usually have a stock of three months in the market, so a buffer of a couple of months to implement the changes would be good. Wholesalers have stock and may demand refunds.”
Sanjay Kumar Agarwal, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), ruled out any extension of the deadline. “From September 22, invoices must reflect the new rates. If companies keep MRP unchanged, they must adjust margins so consumers benefit. Otherwise, it amounts to profiteering, which is not permitted,” he told TNIE.
Healthcare companies like Abbott have also committed to revising MRPs while extending additional credit support to retailers facing working capital pressure.
In the textile sector, Rahul Mehta, chief mentor of the Clothing Manufacturers’ Association of India (CMAI), said traditional wear and woolens could see prices rise 10-15% as GST on premium garments has increased from 12% to 18%. Retailers, he added, may either absorb the higher GST or issue new stickers reflecting the additional 6% on existing price tags.
"We are ensuring configuration of revised pricing in our IT/PoS systems to pass on the impacted price differences without any glitches along-with making appropriate communication to our consumers, trade and channel partners about changes," Amit Agarwal, Group CFO, Raymond, told TNIE.
Rajat Mohan, senior partner at AMRG & Associates, said businesses will recalibrate prices at the SKU level, with dealers compensated through credit notes where required.
Meanwhile, the government has asked automakers to display both old and new prices at dealerships across the country.