Relief for companies: Govt eases sticker rules

MUMBAI: In a move that is expected to reduce compliance for companies and allow smooth transition to the new GST regime, the govt has relaxed price sticker norms, making re-stickering of unsold stock manufactured before Sept 22 voluntary (optional) for firms. Companies will no longer be obligated to do so. The FMCG industry, which sells millions of products every month had flagged re-stickering as a logistical challenge, urging authorities to ease the rules. “For stock that is already out in the market and are at various levels-with distributors and retailers, re-stickering would have been very challenging. Biscuits as a category, for instance, are sold through about 10 million retailers. This move by the govt will substantially ease transition to the new GST regime,” Mayank Shah, VP at Parle Products which makes Hide & Seek and Monaco biscuits told TOI.

The govt also said that companies will not be mandated to display the revised MRPs on unsold products or on unused packaging materials which already come with a pre-printed MRP. “…declaration of the revised unit sale price on unsold pre-packaged commodities/unused packaging material or wrapper bearing a pre-printed MRP is not mandatory. However, manufacturers/ packers/ importers/ their representatives may declare the revised unit sale price voluntarily, if they so desire,” the consumer affairs ministry said in a notification on Thursday. Although the govt has waived off the earlier mandated requirement for companies to issue two print advertisements about price revisions, it has directed companies to “take immediate measures” to sensitise dealers, retailers and consumers about revision in GST rates through all possible channels of communication. Besides, companies will also need to send circulars to their trade partners about changed prices with copies sent to central and state legal metrology officials. FMCG companies have already started moving production to new MRPs. Much of the price reductions will happen in large packs. It has also been clarified that companies can use existing packaging materials printed before the GST revision until March 31, 2026, or until stocks are depleted, whichever is earlier. “We have initiated an extensive exercise of informing all trade partners about the price revisions of our products across categories so that the benefits arising out of revised GST rates are passed on to the end consumer. Necessary steps are also being taken to notify consumers about the ensuing benefits,” said B Sumant, executive director at ITC.