Quick Summary
Introduction With the advent of GST 2.0, the statutory anti-profiteering mechanism under Section 171 of the Central Goods Services Tax Act, 2017 ("the CGST Act") ceases to exist on March 31, 2025, shifting the emphasis from tax enforcement to compliance under consumer protection and competition la
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
Yes, revised MRPs must be affixed immediately on unsold inventory by stamping, sticker, or online printing, and advertised in two newspapers. Delays may result in penalties for unfair trade practices.
A revised MRP sticker must be affixed to unsold stock, ensuring both the old and new MRPs are visible, as per the Legal Metrology (Packaged Commodities) Rules, 2011.
Yes, MRP may be increased proportionately, but profiteering beyond the tax hike is prohibited under the Consumer Protection Act, 2019.
Even after the NAA/CCI cease to exist, action can be taken under the Consumer Protection Act, 2019 (Unfair Trade Practices) and the Competition Act, 2002 (abuse of dominance/unjust enrichment).
Yes, if transparent and quantifiable. Increasing grammage for the same price can be an acceptable method to pass on the benefit, provided it fully reflects the GST reduction.
For stock manufactured before a GST rate cut, relabelling with the revised MRP is permitted. For new stock, businesses can choose methods like rate cuts, discounts, or grammage increases, but transparency is mandatory.
CAclubindia
