MRP revision and old-sticker stock

In short: the MRP printed on the box is the most you may charge for that pair, and it includes all taxes. You may sell below it, never above. When the MRP of an article changes, treat the old-sticker pairs and the new-sticker pairs as two lots with two prices until the old lot is sold.

What MRP means

The maximum retail price is declared by the manufacturer, packer or importer on the package under the Legal Metrology (Packaged Commodities) Rules. It is inclusive of all taxes. A retailer cannot charge more than the printed MRP, whatever the retailer's own cost or the current tax rate.

When the MRP goes up

• Pairs that already carry the old, lower MRP must be sold at or below that printed price.
• Do not paste a higher price over an old one. Altering the declared price upward is not the retailer's right.
• New stock arrives with the new MRP. For a while you will hold the same article at two prices.

When the MRP comes down

• You can always sell below the printed MRP, so the new lower price can be charged at once on old-sticker pairs.
• Where a brand reduces prices — for example after a GST rate cut — it normally sends a revised price list and tells retailers how to mark old stock. Follow the brand's instruction.
• If a revised price is shown by a sticker or stamp, the original MRP should stay visible; it must not be hidden.
• After a tax change the Government has sometimes allowed revised MRPs to be declared on unsold stock for a limited period. Check the current Legal Metrology advisory or ask the brand before you relabel.

GST and the MRP

Because the MRP includes GST, a change in the GST rate changes what you keep out of the same MRP. When footwear up to ₹2,500 a pair moved from 12% to 5% on 22 September 2025, a pair sold at an unchanged MRP of ₹1,999 left the shop ₹1,903.80 instead of ₹1,784.82. A rate cut is meant to reach the customer, so expect brands to revise such prices downward.

Running two lots without mistakes

1. Record the date from which the new MRP applies.
2. Count the old-MRP pairs of each size on that date. That is your old lot.
3. Sell the old lot first — oldest box first — at its printed price.
4. Label only the stock that is entitled to the new price: new arrivals, or pairs the brand has told you to re-mark.
5. Tell the counter. The commonest mistake is billing an old-sticker pair at the new price because the computer shows only one MRP.

In Padam

MRP revision changes an article's MRP from a date and keeps the old-MRP stock sellable at its printed price. Labels can be reprinted for the revised stock, and billing shows an “oldest box first” hint.

General information, not tax or legal advice. Last reviewed 16 November 2026. Rates and rules change — confirm with your chartered accountant before you act on it.