Chaos in Hyderabad markets over rollout of new GST prices

Ahead of the implementation of GST rate cuts on September 22, Hyderabad retailers are caught in confusion. Retailers and shopkeepers say they have no clarity on how or when the revised prices will actually reach their shelves.

At least half a dozen shop owners that The Hindu spoke to said they are not aware about how the new MRPs are to be implemented.

“We have not received any revised price list or new MRPs from the companies. Until then, we will continue to sell the stock at current prices. Maybe by mid-October things will be regularised,” said Sandeep, a general store owner in Trimulgherry’s Lal Bazaar.

In Sindhi Colony, another shopkeeper pointed to the printed labels on packets stacked in his store. “Why should we sell at a loss when the MRP is clearly printed? Nobody has told us anything,” he said.

A chain-store owner with medical-cum-utility outlets across the city described the situation as “confusion at every level”. Some companies, he said, had even stopped supply, waiting to push fresh consignments with new MRPs. “We don’t know what to do with existing stock. Should it be sold on the old MRP or at reduced rates? Everyone is waiting for clarity,” he said.

Srinivas, a shopkeeper in Ramanthapur, said the new rates may take weeks to reflect. “Revised tags will come only in 2–3 weeks. Until then, how can we sell at lower prices? Why should we take the hit?” he asked.

GST Department steps up vigilance

However, a Goods and Services Tax (GST) Department official said they are stepping up vigilance to ensure the benefits of tax cuts reach consumers.

“Our enforcement wing or the anti-profiteering wing keeps a close watch on the market. If a retailer or dealer continues to sell at old prices without passing on the tax benefit, we will act,” a senior GST official said.

“Even if reprinting MRPs is not possible, sellers must display revised price lists in their shops and ensure the consumer pays the reduced amount,” the GST official explained.

Under the Department of Consumer Affairs circular issued on September 9 and the Legal Metrology (Packaged Commodities) Rules, 2011, companies must immediately update prices on unsold stock. This can be done by stamping, applying stickers or printing revised labels. Where this is not practical, Rule 33 of the Legal Metrology Rules allows businesses to continue selling goods with dual price declarations, the original and the revised, until December 31, 2025 or till the date the stock is exhausted, whichever is earlier.

For retailers and manufacturers, however, the shift is not without strain.

Retail and brand expert Harish Bijoor said the transition is hard for smaller businesses, “In the Indian distribution system, there is always inventory in the pipeline — around two and a half months’ worth. Now, with the new rules, retailers are obliged to sell it at reduced rates, even though they purchased it at a higher cost. Otherwise, people simply will not buy from them. They will have to furnish new price lists and stickers and later seek rebates or adjustments to recover the loss,” he said.

If a retailer refuses to pass on the cut, shoppers can lodge a complaint with the GST Department or on State Consumer portals.