Published: Mon, July 10, 2017
Global Media | By Abel Hampton

Old stocks too must show post-GST price, companies warned

Old stocks too must show post-GST price, companies warned

"As per the amendments, there won't be dual MRP (maximum retail price) on the products".

As per the order, which comes into force starting January 1, 2018, companies will not be allowed to charge a different price for water, soft drinks or snacks at premium locations.

The government on Friday said that it is mandatory to print the revised MRP on the inventory, else stringent action will be taken for violation of the Packaged Commodities Rules.

A few individual traders and commercial establishments are allegedly not passing on the reprice benefit to consumers and are, in fact, found to be charging more in the name of GST.

The Minister said, non-compliance of this will attract a fine of 25 thousand rupees for first offence, 50 thousand rupees for a repeat offence, and penalty of up to one lakh rupees for third offence onwards and even imprisonment of up to one year.

"The consumer should know about the change in prices - whether they have increased or decreased post GST", Paswan said.

Earlier this week, the government had allowed manufacturers to clear unsold stocks by September 30, but with labels indicating the new price after factoring in the GST incidence.

The major bottleneck faced by the GST council is to ensure that consumers are passed on to the customers apart from ensuring that input tax credit facility is not utilized. "All Ministries concerned, including Finance and Consumer Affairs Ministries, are alert and a redressal mechanism is in place to resolve the concerns of consumers and traders", Paswan said. "There are initial hiccups while implementing GST, but all those will be resolved soon. Stickers of new MRP should be posted so that consumers are aware of the change in rates after GST".

India moved to GST regime on July 1 this year. Consumer affairs ministry sources said the direction for pasting additional stickers on unsold packaged items has been issued as per the provisions in the law.

The old MRP will have to be necessarily displayed on the unsold inventories and the new rates can be reflected by way of stickers or through online printing alongside, Consumer Affairs Secretary Avinash Srivastava told reporters here.

Like this: