The Government is now considering invoking the Legal Metrology Act, 2009 to address cases where businesses fail to pass on GST rate cuts to consumers.

What’s going on?

1. When GST rates were recently reduced, some businesses allegedly increased the base price of goods so that the net benefit to the end-consumer was diluted.
2. Since the GST regime governs the tax component but not the base product price, the Legal Metrology Act is being explored as the tool to catch these manipulations.
3. If a company inflates the base price and then applies the lower GST, consumers may not see true savings — and regulators may classify that as a violation under pre-packaged commodity rules or misdeclaration.

What this means for weighing / measurement / trade businesses

1. More scrutiny may come on MRP declarations, price labels, net quantity statements, and how “value” is represented on packaging.
2. If your product pricing or labeling has not been updated post-GST change, you may be caught in enforcement actions.
3. Businesses should audit their product labels, packaging, and MRP statements to make sure they reflect true value changes.

Need help checking your labels, recalibrating packaging declarations, or ensuring compliance under the updated legal metrology regime? Let’s talk — we can assist you in aligning with the new scrutiny and protect your business.