Talking tough on maximum retail price or MRP norms, the Government on Friday warned that manufacturers would face penalty upto Rs 1 lakh and a jail term for violation of the packaged commodities rules - not printing revised price on unsold and new products.
This provision has been enforced under the legal Metrology Act of 2009. The move came after the reports of complaints in the most of the places pan India that traders are overcharging with arbitrary tax rates from the consumers. On Thursday, The Pioneer also carried an exclusive report how consumers are trapped by traders with their revised new rates on commodities, especially hospitality industry.
Making its latest effort for consumers’ satisfaction, the Government is trying to ensure compliance by manufacturers and retailers under the new Goods and Services Tax (GST) era.
“It is mandatory to print revised MRP on the inventory or else stringent action will be taken against them who violate of the Packaged Commodities Rules. There is a fine upto Rs 1 lakh and a jail term if new post-GST rates are not printed on the inventory in the interest of consumers,” Consumer Affairs Minister Ram Vilas Paswan on Friday told reporters here.
“Non-compliance of this will attract a fine of Rs 25,000 for first time offence, Rs 50,000 for second time and up to Rs 1 lakh penalty for third offence onwards and even imprisonment of up to one year,” he added.
Manufacturers have been allowed to clear the unsold stocks by September with new maximum retail price or MRP. “A committee of the Consumer Affairs Ministry has been set up to address consumer grievances on GST and even helplines have been increased to 60 from 14 to address tax related queries,” the Minister said.
It has been observed that some traders and retailers are reportedly charging GST above the MRP which already factors in all taxes. The Government officials said such instances are violations of the anti-profiteering clauses of the GST Act, and will be dealt with if customers complain.
More than 700 queries have been received by the consumer helplines and the Ministry has sought expert help from its finance counterpart to resolve them. “There are initial hiccups while implementing GST, but all those will be resolved soon. All Ministries concerned, including Finance and Consumer Affairs Ministries, are alert and a redressal mechanism is in place to resolve the concerns of consumers and traders,” Paswan said.
Under the new GST regime, he said some prices of goods have fallen and some have risen. “We have told companies to reprint revised rates on unsold goods. Stickers of new MRP should be pasted so that consumers are aware of the change in rates after GST,” he added.
India moved to GST regime on July 1 this year. A relaxation was given to manufacturers and importers to reprint the new MRP after GST on the inventory to be sold by September.
Paswan also said the new rates to be printed on the inventory should be communicated to the Consumer Affairs Ministry and advertised for better awareness of consumers.