Not reprinting MRP could invite jail term

Cracking the whip against errant manufacturers, Consumer Affairs Minister Ram Vilas Paswan on Friday warned of a fine of up to Rs 1 lakh and a jail term if new post-GST rates are not printed on the inventory in the interest of consumers. A committee of the consumer affairs ministry has been set up to address grievances on GST and helplines have been increased to 60 from 14 to address tax-related queries, the minister.

"Manufacturers will face a penalty, including jail, for not printing revised price on unsold and new products under a new GST rule. The stringent action will be taken for violation of the Packaged Commodities Rules," the minister warned, adding that the government has amended consumer protection laws to ensure consumers are not short-changed of the benefits manufacturers earn under GST.

The move comes after the Centre allowed traders to sell pre-GST stock with new MRP stickers till September 30. The move to enforce the direction was taken after consumers complained of arbitrary taxes on MRP.

Non-compliance of this would attract a fine of Rs 25,000 for a first-time offence, Rs 50,000 the second time and up to Rs 1 lakh penalty for third offence onwards and even imprisonment of up to one year, the minister said.

Explaining about the changes in the consumer protection laws, the minister said, "As per the amendments, there won't be dual MRP on the products. Secondly, it has been made compulsory to increase the prevailing text size by minimum one and a half and maximum double on the products about important details like - the name of the manufacturer, manufacturing date, date of import, expiry date, MRP, quantity, and customer care details."

The minister further said, "The e-commerce companies will also have to follow new text size rule so that it is easy for the consumers. We have also brought medical device under the packaged commodity rules, 2011. Therefore, the medical device manufacturers will also have to follow the new rules of text size."