Retailers and manufacturers have the necessary approval of the government to brand new prices on their pre-GST goods which was left unsold and sell them by the end of September. This has ended confusion for the retailers over the status of the stock which had been left unsold on July 1. This decision would also help to keep potential malpractices in check. However, a few industry players are disappointed that this government notification had not been issued earlier.
“If we would have known this earlier, the industry could have planned the transition better. Retailers would have not have been under pressure to liquidate old stock at almost cost price and primary sales from companies to trade would not have declined the way it did in June,” said Videocon chief operating officer CM Singh.
The government has also clarified that any increase in maximum retail price (MRP) on goods due to GST on the old stock will have to be advertised in two national paper. However, no such advertisement needs to be run if the new MRP is lower.