Revised Guidelines on GST Rate Change and MRP Revision under Legal Metrology Rules (2025)

Introduction

The Ministry of Consumer Affairs, Food & Public Distribution, Government of India, has issued a revised circular dated 18.09.2025, superseding its earlier MRP Revision circular dated 09.09.2025. These changes directly impact manufacturers, packers, importers, and retailers dealing with pre-packaged commodities in the wake of GST rate revisions.

The revisions simplify compliance requirements, reduce mandatory advertisement obligations, and provide extended relief for the use of pre-printed packaging material.

This article explains the revised guidelines, the changes from the earlier advisory, and what businesses must do to remain compliant.

Key Modifications in the Revised Circular (18.09.2025)

1. Voluntary Price Sticker on Unsold Stock
   • Manufacturers, packers, and importers may voluntarily affix revised MRP stickers on unsold stock manufactured before 22nd September 2025, provided the original MRP remains visible.
   • This is optional, not mandatory, under the revised circular.

2. Waiver of Newspaper Advertisement Requirement
   • Under Rule 18(3) of the Legal Metrology (Packaged Commodities) Rules, 2011, manufacturers/importers were earlier required to publish revised prices in two newspapers.
   • The new circular waives this requirement.
   • Instead, businesses must send circulars to wholesale dealers and retailers, while copying the Director (Legal Metrology, Govt. of India) and Controllers of Legal Metrology of all States/UTs.

3. Dealer and Consumer Awareness
   • Businesses must now actively sensitize dealers, retailers, and consumers about GST-linked price revisions through multiple communication channels, including print, electronic, and social media.

4. Extended Use of Old Packaging Material
   • Pre-printed packaging material (with old MRP) can be used until 31st March 2026 or until stocks are exhausted, whichever is earlier.
   • Corrections to MRP may be made via stamping, stickers, or online printing at any suitable place on the package.

5. Declaration of Revised Unit Sale Price, Not Mandatory
   • For unsold stock or unused packaging, declaring the revised MRP is optional.
   • Businesses may do so voluntarily, but it is not a legal requirement.

Why These Changes Matter

The revised circular reduces the compliance burden while ensuring transparency in price changes due to GST revision. Key takeaways for businesses:

• No more expensive newspaper advertisements.
• Greater flexibility in handling old packaging.
• Clear communication duties towards retailers and consumers.
• Optional revised price declaration on unsold stock, lowering operational pressure.

Practical Implications for Businesses

• Retail compliance: Ensure dealers update prices at the point of sale.
• Documentation: Maintain proper records of circulars sent to wholesalers/retailers.
• Awareness measures: Proactively use digital and traditional platforms to inform consumers.
• Stock management: Plan packaging usage to avoid waste while staying compliant with the March 2026 deadline.

Conclusion

The 18.09.2025 revised circular under Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011 brings much-needed relief to businesses facing GST rate revisions. By eliminating newspaper advertisement requirements and allowing extended use of old packaging, the government has struck a balance between compliance ease and consumer transparency.

For businesses, the key lies in timely dealer communication, accurate price updates, and proper documentation to avoid any future scrutiny by the authorities.

Keywords: GST rate revision, MRP change after GST, Legal Metrology Rules 2011, Rule 18(3), Rule 33, GST circular September 2025, revised price sticker, packaging compliance GST, consumer protection GST