• Missing GST labels may get Businessmen in jail

    July 08, 2017

    Sellers of pre-packaged commodities, manufacturers, importers will be penalized if they fail to print post Goods and Services Tax (GST) rates on product labels.

    The Ministry of Consumer Affairs has come up with a new form for affixing the revised maximum retail price(MRP) on the old stocks which were manufactured and packed before July 1.

    The government has clarified that they don’t want to impose inspector raj but the sellers and the manufacturers are required to follow what is legally correct. In no way, companies will be releasing all goods in one go and hence they can put the prices on the inventory in batches. However, companies claim this to be a logistical nightmare as they have a huge inventory and it will be extremely cumbersome to put or change MRPs.

    To ease the compliance, companies can put prices in batches and can do it until September 30.  Post-September 30, no one will be allowed to sell pre-packaged with two such MRPs. These directions have been issued for the benefit of the consumers. The consumers have the full right to informed as to how much less or more they paying.

    After the implementation of GST the cost of manufacturing has really gone down for companies and the real benefit should pass on to the consumers.

    Rule 33 of the Indian Legal Metrology(Packaged Commodities) Rules stipulates that the Centre can permit manufacturers or packers for sale of the packages for a reasonable period by “relaxing one or more provisions of the rules” with corrective measures.

    For the convenience of consumers, the consumer affairs ministry has also set up a committee to address consumer grievances on GST. The National Consumer Helpline is also addressing the concerns of the consumers regarding GST.

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