Sticker No Longer Mandatory After GST Cut: Centre Tells Karnataka HC; Advisory Makes Re‑MRP Optional
Introduction
The Union Government informed the Karnataka High Court that the 9 September instruction mandating revised MRP disclosure on unsold stock after GST rate cuts has been superseded by a 18 September advisory making re‑stickering optional, provided the original MRP remains visible. The relaxation aligns Legal Metrology compliance with operational realities from 22 September 2025, ensuring rate‑cut benefits reach consumers without a forced nationwide stickering drive.
What changed
- Revised price stickers on unsold pre‑22 September 2025 stock are voluntary; the original printed MRP must not be obscured.
- The Rule 18(3) requirement to publish revised MRPs in two newspapers is waived; instead, circulate revised price lists to dealers/retailers and endorse copies to Central and State Legal Metrology authorities.
- Old packaging/wrappers printed before the revision may be used until 31 March 2026 or until stock lasts, with corrected MRP via stamp/sticker/online printing at any suitable place on the package.
- Companies are encouraged to proactively inform dealers, retailers, and consumers about revised GST‑linked prices through appropriate communication channels.
Court case
In WP 27926/2025 (TTK Prestige Limited v. Union of India & Others), the Union placed the 18 September advisory on record; Justice B M Shyam Prasad disposed of the petition in view of the relaxation superseding the earlier instruction. The petitioner highlighted the impracticality of stickering over 26 lakh products across 3,000 units, potentially deploying 650 personnel for stock worth about ₹185 crore before 22 September—concerns addressed by making re‑stickering optional.
Compliance cues
- Continue selling pre‑22 September stock without mandatory re‑stickering while passing on the GST reduction through billing/POS, ensuring the effective payable price reflects the lower tax.
- If choosing to affix stickers, keep the original MRP visible and maintain records of price‑list communications to dealers and Legal Metrology authorities as prescribed.
- Retain copies of the 18 September advisory with store and field teams, update ERP/invoicing, and maintain clear audit trails to evidence transparent pass‑through of the GST benefit.
Conclusion
The relaxation strikes a balance between ease of doing business and consumer protection by focusing on transparent billing and communication rather than compulsory stickering, which led the High Court to dispose of the case after the Union’s clarification. With the advisory in force from 22 September 2025, compliance centers on visibility of the original MRP, accurate effective pricing, and documented dealer communications—not a nationwide re‑stickering exercise.
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