The American Chamber of Commerce in India commends the Government of India for this bold and historic initiative of revamp of Goods & Services Tax, which is clearly aimed at bringing meaningful benefits to the people. This visionary step reflects a strong commitment to progress and inclusive development, and we deeply appreciate the leadership and foresight that has made it possible.
Introduction
1. In this context, AMCHAM India, on behalf of its members who are manufacturers of packaged drinking water, bag-in-boxes of non-alcoholic preparation, aerated drinks, fruit juices, fruit-based drinks, biscuits, chocolates, cocoa-based beverages and confectionary products, has collated some issues for the consideration of Government of India. The Goods
and Service Tax (“GST”) Council in its recommendations from the 56th Council Meeting has recommended the reduction of GST inter alia on some of our goods like packaged drinking water, fruit juices, soda, biscuits, chocolates, and confectionery products, effective from 22 September 2025.
2. This reduction in GST may require a commensurate reduction in the Maximum Retail Price (“MRP”) of contextual goods under the ambit of this change, when the new reduced rates come into effect, as the manufacturers find it imperative to pass on the benefit of reduced taxation and progressive legislation, downstream to the supply chain.
Communication Issued by Ministry of Consumer Affairs
3. The Ministry of Consumer Affairs, Food and Public Distribution — Legal Metrology Division (“Legal Metrology Division”) has issued an Office Memorandum No. I-10/14/2020-W&M dated 9 September 2025 (“Office Memorandum”) granting permission to manufacturers and packers of pre-packaged commodities to declare revised MRP on unsold stock manufactured or packed prior to revision of GST, taking into account the downward revision due to the change in GST rates.
4. This declaration of changed MRP has been allowed till 31 December 2025, or till the exhaustion of stock, whichever is earlier, by means of stamping, line printing, putting a sticker or online printing on existing stock. As precedent, at the time of introduction of GST, similar memorandums were issued in 2017, permitting manufacturers of pre-packaged goods to declare changed MRP (due to introduction of GST) on unsold stock
