Impact of GST on unsold stock of pre-packaged commodities

Complete overview GST impact on Pre-Packaged Unsold goods 

The Department of Consumer Affairs addressed the impact of GST on unsold stock of pre-packaged commodities under the Legal Metrology (Packaged Commodities) Rules 2022 in a letter dated 01.08.2022, in light of the recent decision to impose a % GST on pre-packaged commodities.

In accordance with the authority granted by rule 33 (1) of the Legal Metrology (Packaged Commodities) Rules 2022, the central govt hereby permits manufacturers, packers, and importers of pre-packaged commodities to declare revised retail sale prices (MRP) on unsold stock produced, packed, or imported prior to revision of the GST, after including the applicable/ increased amount of tax, or after reducing the reduced amount of tax due to GST, if any. Following compliance with the following requirements, declaration of the revised retail sale price shall be made by stamping, putting a sticker, or online printing, as relevant: 

GST Effected the Pre-Packaged Unsold goods 

In a letter dated 1^st August 2022 issued by Department of Consumer Affairs, which explained the GST rate on unsold stock of pre-packaged commodities with regard to the Legal Metrology (Packaged Commodities) Rules 2022. Clarified on the Impact of GST on unsold stock of Pre-Packaged Commodities under Legal Metrology (Packaged Commodities) Rules 2022,  That needs to complying with the following conditions:

• The difference between the previous MRP and the revised MRP shall not be more than the extent to increase in the Tax. i.e Difference between MRP and revised MRP should be in excess to increase in Tax.
• Stocks remain unsold till January 31, 2023, may revised the MRP of the stocks left. i.e Permitted to declare revised MRP on unsold stock upto 31.01.2023.
• The MRP and the modified MRP both will be displayed in the PDP (Product Detail Page), overwriting the revised MRP on the original MRP is not allowed. i.e MRP and revised MRP both slould be displayed on the PDP.
• Any modifications to the MRP must be announced through minimum two advertisements either in one or two newspapers by the manufacturers i.e Change in MRP shall be advertised

Furthermore, it is made clear that any packaging material or wrapper that was not used up by the manufacturer, packer, or importer prior to the revision of GST may be used for packing materials up until January 31, 2023, or until the date the material is used up, whichever comes first, after making any necessary adjustments to the retail sale price (MRP) due to the implementation of GST by way of stamping, implementing stickers, or printing online, as appropriate.

Complete Circular can be accessed on GST on unsold stock of Pre-Packaged Commodities Details clarification attached here under 

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