GST 2.0: Dual prices on biscuit packets confuse consumers
Across several neighbourhoods, biscuits are being sold above the printed price. In Kodambakkam, roadside shops are charging 50 paise to Re 1 more than the MRP.
Advertised as a Rs 10 packet, the MRP was listed as Rs 9
CHENNAI: Even as Aavin faces criticism for not passing on the GST reduction to consumers, traders in several parts of Chennai are allegedly overcharging for biscuit packets whose prices were reduced following the GST Council’s September 22 revision. Major biscuit manufacturers continue to print dual prices, Rs 10 and Rs 9, on packets — a practice that consumers say is misleading and is being exploited by retailers.
Across several neighbourhoods, biscuits are being sold above the printed price. In Kodambakkam, roadside shops are charging 50 paise to Re 1 more than the MRP.
After the rollout of GST 2.0, consumers have found that vendors continue to collect the older, higher price even when the reduced MRP is printed. A petty shop owner in Kodambakkam said they had been selling the packets for Rs 5 and Rs 10, and no buyer had raised a complaint. Small biscuit packets with an MRP of Rs 5 now carry a revised price of Rs 4.50, while larger packets marked Rs 10 have a reduced MRP of Rs 9.
However, vendors continue to sell the Rs 4.50 packet for Rs 5 and the Rs 9 packet for Rs 10. When questioned, shopkeepers often display packets with the older MRP and claim that only Rs 10 stock is available.
Consumers allege that retailers switch between packets with different MRPs and prefer to sell those carrying the higher label. They say the clear visibility of the older price allows vendors to
justify charging more, especially in areas with low consumer awareness.
T Sadagopan, president of the Tamil Nadu Progressive Consumer Association, said GST 2.0 came into effect on September 22, when many manufacturers still had old wrappers with higher prices.
“Biscuits produced during that transition were packed using old covers with corrected MRP stickers. By January to February, packets with the newly printed MRP will be fully available,” Sadagopan said.
Consumer organisations say inadequate monitoring and lack of awareness have allowed the malpractice to continue. Sadagopan said stronger inspections and stricter enforcement were needed to curb overcharging.
Charging more than the MRP is an offence under the Legal Metrology Act. Traders can be fined up to Rs 25,000 for the first violation, up to Rs 50,000 for the second, and up to Rs 1 lakh, or face up to one year in jail, for repeated offences.
