New GST Rates: Are You Paying Too Much? What Consumers Need to Know About Revised MRPs!

Effective September 22, 2022, a significant change in Goods and Services Tax (GST) rates came into effect, particularly impacting a wide array of pre-packaged and labelled food items. This adjustment means that common household staples like flour, pulses, curd, and lassi, which previously enjoyed exemptions, now fall under the 5% GST bracket.

While this change aims to streamline tax structures, it places a crucial responsibility on consumers: verifying the Maximum Retail Price (MRP).

The Ministry of Consumer Affairs, Food & Public Distribution has issued clear guidelines to ensure a smooth transition and prevent any potential exploitation.

Retailers are now mandated to implement new MRPs reflecting the revised GST rates on all unsold pre-packaged goods. For existing stock that was manufactured or packaged before the new rates, a special provision allows retailers to affix a sticker with the revised MRP. This sticker must clearly indicate the new price, alongside the old MRP, to maintain transparency.

This sticker provision is not open-ended.

Retailers can utilize this method to clear their existing stock until November 30, 2022, or until the stock is exhausted, whichever comes first. This means that if you're purchasing these items after September 22, 2022, it is absolutely essential to check for a revised MRP or a clear sticker indicating the updated price.

Why is this vigilance so important? Without careful attention, consumers could inadvertently pay the old, lower price plus the additional GST, leading to overcharging.

Retailers are strictly prohibited from selling products with the old MRP without reflecting the new tax rates. The government's directive is designed to protect consumer interests, and it's up to individual buyers to enforce this protection by being informed and attentive.

So, the next time you're at the grocery store, take a moment to inspect the packaging of your pre-packaged flour, lentils, curd, or other similar items.

Look for the new MRP printed directly on the pack or a clearly visible sticker. If you notice any discrepancies or suspect you are being overcharged, do not hesitate to bring it to the attention of the store management or report it to consumer helplines. Your awareness is the best defense against paying more than you should.