The Indian government on Friday warned manufacturers, sellers, and importers to revise maximum retail price (MRP) of the goods manufactured and packaged before 1st July, with the post-GST price sticker. Or else, they would have to suffer from penalties ranging from fines upto Rs 1 lakh or prison for one year.
Food Minister, Ram Vilas Paswan said in a media conference, “We don’t want inspector raj, but they must follow what is legally correct. The companies are not going to release all the unsold items in one go. They can put the new prices in batches and that’s why we have given time till September 30 to exhaust their stocks. After September 30, no one will be allowed to sell pre-packaged items with such two MRPs. The industry must understand that we have issued the direction for the benefit of consumers. They need to inform consumers how much less or more they are paying.”
As per the Legal Metrology Act, the penalties are for the offense are like fine of Rs 25,000 for the first such offense, the second such offense will attract fine may be upto Rs 50,000.
BN Dixit, Director of legal metrology department said, “Companies are taking advantage of input credits under GST, which brings their manufacturing costs down, but they are not passing on the benefits to consumers. We want them to do that.”
He further added, the officers of his department will take care in this matter and monitor the compliance of MRPs revision order under GST. Altogether, the consumers are urged to lodge complaints in case of violations. The ministry of consumer affairs has set up a helpline in order to address customer grievances and GST-related queries.
Earlier, the traders allowed to sell old- stock with the new MRP stickers until 30th September. But with the fresh goods, the revision of MRP is mandatory.
Reportedly, some traders and dealers are charging GST on MRP, which is the violations of the anti-profiteering clauses of GST Act. in the wake of customers complain, the government announced to take legal action against such instances.
At the stroke of midnight on July 1, the GST rolled out and replaced some 20 central and state taxes into a singular one to unify the country of 1.3 billion into one of the world’s biggest common markets.
