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C&M E-Alert: Impact on MRP due to the recent GST rate revisions

  • Writer: Mitesh Shah
    Mitesh Shah
  • Sep 5
  • 2 min read
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In its latest meeting held on 03 September 2025, the GST Council, India’s apex institution for GST policy formulation, recommended a series of multi-sectoral and multi-thematic reforms. Set out below is a list of significant updates that ought to be noted arising out of the 56th meeting of the GST Council:


Change in GST rate structure


Currently, the GST rate structure exists as a 4-tiered structure comprising of the 5%, 12%, 18% and 28% tax slabs. The GST Council has recommended simplifying this into a 2-rate structure comprising of a Standard Rate of 18% and a Merit Rate of 5% (and a Special De-merit rate of 40% for selected goods and services) with a recommendation to implement 2-rate structure effective from 22 September 2025.

 

Revisions of GST rates & impact on MRP


There have been quite a few revisions of GST rates for consumer products which could require altering the retail price (MRP) of few products that are unsold as on and from 22 September 2025. In the past, the alteration of MRP post changes in GST rates had been mandated through directions issued by the Ministry of Consumer Affairs, Government of India, permitting the manufacturers, packers and importers of pre-packaged commodities to declare the revised MRP on unsold stock by way of stamping, putting stickers or online printing on the goods. We expect that similar directions will be issued pursuant to the recent revision of the GST rates.

The table below shows a snapshot of a few consumer products and how GST rate changes will impact their prices. Manufacturers, importers, distributors and retailers selling the products at MRP will need to prepare themselves and take necessary steps for its implementation at the relevant time:


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The above-mentioned products are to be read with Annexure – I of the Press Release issued by the Ministry of Finance on 03 September 2025 bearing Release ID: 2163555. The revisions to the GST law pursuant to the said press release will be notified by the Government of India through relevant circulars/ notifications/ law amendments.

 


Should you have any queries or comments on this alert please visit our LinkedIn page. You may also contact the authors below.

 

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