GST 2.0: Centre eases re-stickering and relabelling requirements for existing stock

With just a few days before the new rates of goods and services tax (GST) come into effect, the government has eased re-stickering and re-labelling requirements for existing stock, making it a voluntary exercise, based on requests from industry.

“Pursuant to advisory dated September 9, 2025, on the above subject, the Central Government, has received representation from industry and trade associations about the need for simplifying the procedure for legal compliance by manufactures and importers of prepackaged commodity in the wake of GST revision,” said the circular by the legal metrology department of the ministry of consumer affairs.

The new GST rates will come into effect from September 22 and there were concerns that the previous circular was restrictive in nature.

As per the new circular, the Central Government, has decided to allow manufacturers, packers, importers and their representatives who may like to voluntarily affix additional revised price sticker, on unsold packages manufactured before September 22, 2025 and are lying with them, provided the original price declaration on the package is not obstructed.

It has also waived off the requirement that manufactures and importers must issue advertisements in two newspapers about the revised prices. “Consequently, the manufactures/packers/importers are now required to send only circulars to wholesale dealers/retailers, etc. about revised prices with copy thereof endorsed to Director, Legal Metrology of the Central Government and Controller, Legal Metrology of All States/UTs and to ensure price compliance at the retailer level,” it said.

Further, it has also underlined that the manufacturers, packers, importers shall take immediate measures to sensitise dealers, retailers, consumers about revision in GST rates through all possible channels of communication including electronic, print and social media.

It has also extended the timeline to use existing packaging material until March 31, 2026 after correcting the retail sale price due to the GST cut through stamping, putting a sticker or online printing at any place on the package. It had earlier permitted use of existing packaging material until December 31, 2025.

Saurabh Agarwal, Tax Partner, EY India said the clarification that there will be no mandatory requirement for repackaging, relabelling, and re-stickering is a great relief to the industry and will help avoid significant costs and disruptions. “These proactive and supportive measures show the government’s commitment to improving the ease of doing business and fostering a collaborative environment,” he noted.

Abhishek Jain, Indirect Tax Head & Partner, KPMG said the pragmatic guidance should go a long way in addressing industry concerns. “With businesses already proactively working towards passing on the benefits of rate reductions, this clarification on ease of compliance will further support GST 2.0 in becoming a true win-win for both industry and consumers,” he said.