Retailers body issues GST Advisory

Effective 22 Sep. ‘25, new GST rules will be applicable on a whole gamut of goods including FMCG, Food products, Fashion and Accessories. Retailers Association of India (RAI), the apex body (reperesenting 1,000s of Brands and Organised Retailers) has issued a General Advisory to this effect.

In line with the principles of anti-profiteering under GST law, businesses are obligated to pass on any reduction in tax incidence to consumers, says RAI..

Conversely, where GST rates have increased, appropriate revisions to Maximum Retail Price (MRP) can be undertake transparently, notes RAI.

By proactively informing customers—whether through in-store displays, digital platforms, or billing disclosures—members can demonstrate their commitment to fairness, accountability, and customer-first value.

Scenario 1: Decrease in GST Rate (e.g., 12% or 18% → 5%)

Where GST rates have been reduced or input tax credit benefits become available, the benefit must be passed on to customers through a commensurate reduction in prices.

Suggested Methods of Communication

In-store Communication

• Posters and signage at entrances, shelves, and billing counters
• Highlight percentage discount due to GST reduction (e.g., “6.25% GST Savings on Garments under ₹2500”)
• Showcase Before vs. After Prices on shelf labels
• Place comparative price charts (category/product-wise)

Category / Shelf Signage

• “Special GST Price Benefit! Due to GST rate reduction from 12% → 5%, you now save 6.25% or more on garments under ₹2500
• Comparative price chart available for easy reference
• Old Price: ₹____ New Price: ₹____
• We pass on 100% of GST benefit to you

Billing Counter / Checkout Message

• Prices reduced as per new GST rates effective 22nd September 2025
• GST benefit has been passed on to all our customers
• Check your bill for details!

Thematic Campaigns

Run customer-centric initiatives such as “GST Bachaav Utsav” to create awareness.

Invoice-level Disclosure

• Where technologically feasible, invoices should transparently reflect the GST benefit passed on to consumers
• Line-item Disclosure: Show Old MRP and New MRP (post-GST benefit)
• Invoice Footer Note: “Prices reflect commensurate reduction due to GST rate revision effective 22 September 2025
• GST benefit has been fully passed on to the customer.”

Digital Communication

Inform customers via websites, mobile apps, SMS, and emails regarding reduced GST impact

Scenario 2: Increase in GST Rate (e.g., 12% → 18%)

For goods packaged and labelled with pre-22 September 2025 MRPs, retailers are permitted to revise MRPs upwards to reflect GST rate changes.

Guidelines for MRP Revision

1. Both MRPs must be visible – the old MRP cannot be erased or overwritten

2. Revised MRP must be indicated through sticker/stamp/printing, clearly stating the change is due to GST rate revision.

3. Mention: Revised MRP effective 22 September 2025 (due to GST rate change)

4. The declaration should be legible, durable, and in the same or larger font size as the original MRP.

5. Prominent in-store notices should inform customers about price increases due to GST rate revision.

RAI advises its members to adopt standardised communication and compliance practices in both scenarios to maintain consumer trust, regulatory compliance, and smooth store operations.

Editor’s Note

RAI has also informed that the Advisory should not be construed as legal advice.

The information provided by RAI is based on the latest communication from the Government and regulatory authorities as of date.

Any subsequent notifications or circulars issued by the Government shall override the contents of this advisory.