Govt Extends MRP Declaration Deadline Till March 31 To Ease GST 2.0 Transition

The government, via an official circular issued on Thursday, has extended the deadline for companies to declare the revised maximum retail prices till March 31, 2026. The extension will allow industry players to smoothly adapt to the changes in goods and services tax rates.

"Any packaging material or wrapper which could not be exhausted by the manufacturer or packer or importer prior to revision of GST, may be used for packing of material up to March 31, 2026," the Consumer Affairs Ministry said.

The revised GST rates, which will bring down the tax rates on most items of consumption, will come into effect from Sept. 22.

Earlier, in a circular issued on Sept. 9, the Consumer Affairs Ministry had permitted the industry to use the existing package and wrappers till Dec. 31. It had also mandated newspaper advertisements to educate consumers on the price revision due to GST cuts.

The fresh circular, however, waves off the requirement to publish newspaper ads. Instead, the companies will have to only issue circulars to distributors and retailors.

The ministry further clarified that there is no mandatory requirement for repackaging, re-labelling or re-stickering the existing packages due to the tax cuts that will come into effect next week.

"However, the manufacturers/packers/importers shall take immediate measures to sensitise dealers/retailers/consumers about revision in GST rates through all possible channels of communication including electronic, print and social media," it stated.

Earlier this month, industry bodies flagged their concerns to the government over the use of existing packages, pointing out that companies are holding months’ inventory with old pricing and grammage across the supply chain — from factories to retail shelves.

They warned that goods worth thousands of crores would become unsellable without permission to use existing packaging. In this backdrop, the government's decision to extend the MRP declaration deadline till the end of this fiscal offers significant relief.

The recent GST overhaul saw steep cuts on most consumer goods, with taxes on butter, cheese, and confectionery reduced to 5% from 12%, and on chocolates, biscuits, cornflakes, coffee, ice-cream, hair oil, soaps and toothpaste to 5% from 18%. The GST Council also reduced tax on 36 lifesaving drugs and medicines to nil from higher tax slabs. Similarly, the GST on footwear and apparel priced up to Rs 2,500 will now be taxed at 5%, but those priced beyond that will be taxed at 18%.