Money Matters: GST Change Alert-Are You Double-Checking Mrps?

New Goods and Services Tax (GST) rates will come into effect across India from September 22, 2025, offering potential savings for consumers on a range of goods. However, this also means shoppers must be vigilant while purchasing packaged items, as the transition could cause confusion at local stores.

Old and New MRPs Might Coexist

The Department of Consumer Affairs has issued a revised advisory to help companies implement the changes smoothly. Still, products manufactured before September 22 may display two MRPs: the original and the revised GST-inclusive price. For instance, a biscuit pack with an old MRP of Rs 50 may now show Rs 48 after the tax reduction. A shopkeeper unaware of the update could still charge the higher amount, potentially depriving buyers of the intended savings.

Simplified Compliance for Businesses

Earlier, businesses were required to advertise new MRPs in two newspapers, but that step has now been waived. Instead, manufacturers, packers, and importers only need to circulate updated price lists to dealers and retailers, sharing copies with legal metrology authorities. This makes compliance easier while still aiming to ensure transparency.

Old Packaging Can Be Used

Existing stock with old packaging can continue to be sold until March 31, 2026, or until it runs out. Businesses may correct MRPs on such packaging using stickers, stamps, or digital printing, helping both retailers and consumers navigate the GST transition without wastage or confusion.

Expert Advice for Shoppers

Manoj Mishra, Partner at Grant Thornton Bharat, explained,“The government's clarification reduces compliance burdens for businesses while still ensuring transparency for consumers. But shoppers need to double-check MRPs to make sure they benefit from the GST reduction.”

Stay Alert at Smaller Stores

Consumers are advised to carefully check both the package MRP and the bill before making purchases, particularly at smaller shops where staff may not have updated prices. Vigilance is key to ensuring that the benefit of the GST cut reaches your pocket.

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