GST (Goods and Service Tax) in India is regarded as one of the largest taxations that have taken place in India and also passed by the Indian Government. India has adopted two GST which means GST will be administrated both by the State Government as well as by the Central Government.
In keeping the federal structure of India, it is proposed that the GST will be issued both by the Central Government (CGST) and the State Government (SGST). Prime Minister Narendra Modi introduced GST in India on the midnight of 1st July 2017.The development of GST took many negotiations as well as revisions before getting launched in India in its final form in the year 2017.
According, to the new information given by the government, retailers with unsold pre-GST stored articles are allowed to stay with new costs before selling them. In case, in the hike of prices of the unsold articles the retailers must advertise it in two newspapers. Moreover, after 30th September, the unsold items that are pre-packaged with printed prices must include the GST rate with the prohibitions of add on stickers. Many businesses were left with enormous unsold inventories before the introduction of GST in India from 1st July.
According, to the notification, it is regarded as permissible after the retailer, importer or manufacturer makes rectification in the retail sale price on account of the GST exercising by way of putting sticker or printing online. The notification further declares that, the updated amount must not overwrite on the unsold products but the fresh prices must continue to be displayed.
After the introduction of GST in India on 1st July 2017, the announcement of the change in prices of unsold inventories must be made in either of the following manners after observing with the conditions as referred below:
- Putting stickers.
- Printing online.
Moreover, it has also been declared that the comparison between the retail sale MRP printed from the beginning on the packaged and the corrected cost must not be higher than the extent of the hike in the tax. The existing price shall be continuing to be displayed on the unsold product and overwriting of the prices on products is strictly prohibited. Regarding the adjustment in the MRP of the parcel the packers, importers, or the manufacturers must notify the dealers and the director of Legal Metrology in Central Government and Controllers of Legal Metrology in the Union Territories and States.