After a GST rate change, do four things per SKU: confirm the new rate for your HSN code, update the product tax code on the marketplace, decide the customer price, and check what the change means for MRP and old stock. The latest broad change took effect on 22 September 2025, under notifications dated 17 September 2025. On Amazon.in, sellers stay responsible for applying the right GST rate and product tax code. This is general information, not tax advice.
GST rate change checklist
Updating Marketplace Prices and MRP After a GST Rate Change: A Seller's Checklist
By Blooprint team · Published 9 November 2026 · 7 min read
Key takeaways
- A GST change alters the tax inside your price, not your price. Decide per SKU whether to pass the change to the buyer or keep the customer price and change your net revenue.
- On Amazon.in sellers stay responsible for the right GST rate and product tax code on each listing, and Amazon said it auto-updates only where possible and for select categories.
- To get the pre-tax price from a tax-inclusive price, divide by 1 plus the rate. At 5% that is ₹1,180 divided by 1.05, or ₹1,123.81.
- We could not confirm from a primary source how MRP printed on old stock is treated after a rate change. Check Legal Metrology rules and ask your accountant before relabelling or selling old packs.
In this guide
- Why does a GST change affect my price?
- What is your first step: confirm the rate?
- How do you update tax codes on the marketplace?
- How do you set the new customer price?
- What about MRP on the product or the listing?
- What else should you recheck after repricing?
- Which rate applies to orders placed around the change date?
- What about the stock you already hold?
- How do you keep a record that satisfies an auditor?
- How does the change affect TCS and fees?
- FAQ
- What next?
Why does a GST change affect my price?
Marketplace prices shown to buyers include GST. When the rate on your product changes, the tax portion inside the price changes, so your net revenue per unit changes too, unless you change the customer price. Fees, tax collected at source and your margin are all calculated from that net figure. For how to take GST out of a price, use our GST calculator for sellers.
The sums are simple. Pre-tax price equals inclusive price divided by (1 plus rate). Inclusive price equals pre-tax price times (1 plus rate).
What is your first step: confirm the rate?
Find the HSN code for each product and check the rate in the current rate notifications. After the September 2025 changes the goods schedules are headed 5%, 18% and 40%, with a few special rates. Some rates depend on price. For example, apparel and footwear of sale value up to ₹2,500 are at 5%, while apparel above ₹2,500 is at 18%. That means a price change can itself change the rate, so recheck the rate after any repricing. Our GST rate finder and your accountant can confirm the right entry for your HSN.
How do you update tax codes on the marketplace?
Amazon said it was automatically updating GST rates and product tax codes on some listings wherever possible, for select categories, and that sellers keep full control over pricing. Do not assume your category was covered.
- Download your active listings report from Seller Central.
- Add a column with the correct tax code per SKU from your own rate list.
- Upload the corrections through the bulk listing tools. The exact template and field names are inside Seller Central, which we could not open for this page.
- Spot-check a handful of live listings and a recent invoice.
For Flipkart, GST and HSN settings are in the Seller Hub listing flow. We could not open Flipkart's seller help pages for this guide, so use the Seller Hub help for the steps. If you use a marketplace tool with bulk uploads, test with five SKUs before you upload hundreds.
How do you set the new customer price?
You have two clean choices per SKU.
| Choice | What the buyer pays | What you keep before tax |
|---|---|---|
| Pass the change through | Price moves with the tax | Your pre-tax price stays the same |
| Hold the customer price | Price stays the same | Your pre-tax price moves |
For example, a product has a pre-tax price of ₹1,000 and the rate falls from 18% to 5%. If you pass the change through, the buyer pays ₹1,050 instead of ₹1,180. If you hold the customer price at ₹1,180, your pre-tax revenue rises to ₹1,123.81 (₹1,180 divided by 1.05), which is ₹123.81 more per unit. If a rate rises instead, the same maths cuts your pre-tax revenue when you hold the price.
Pricing is your call. During the September 2025 change Amazon said sellers keep complete control over pricing while it enabled them to pass GST reductions on to customers in applicable categories. Remember that your competitors may pass the cut on. Check where your price sits against the rest of the search page before you decide, and keep a note of the change for your accountant.
What about MRP on the product or the listing?
Packaged goods carry a printed MRP, and the listing may show an MRP too. We could not open the Legal Metrology rules or a Department of Consumer Affairs notice on how a tax change affects MRP on stock already packed, so we do not state a rule here. Three practical points hold regardless.
- Do not sell above the MRP printed on the pack. Confirm the exact rule for your category with a Legal Metrology adviser.
- Do not relabel or re-stamp packs unless you have confirmed that is permitted and how. Read our guide on Legal Metrology for packaged commodities.
- Make sure the MRP on the listing matches what the pack says. A mismatch can lead to complaints and takedowns.
If you advertise a "was" price or discount, the rules on prior prices also matter. See the planned guide on the prior-price 30-day rule.
What else should you recheck after repricing?
A price change touches more than one screen. Walk through this list for each affected SKU:
- Bundles, combos and multipacks, because the bundle price may fall into a different slab than its parts.
- Coupons, promotions and deals, which may have been set on the old price.
- Sponsored ad campaigns, where a new price changes conversion and your break-even ACoS.
- Your own website and other marketplaces, so one product does not carry three prices by accident.
- Invoice templates and your accounting software, so tax lines match the new rate.
Do this in one sitting and log the date and time. If a sale event is close, finish before the event, not during it.
Which rate applies to orders placed around the change date?
The Council's FAQ says time of supply under section 14 of the CGST Act decides the rate. Where goods were supplied before the rate change and the invoice is issued after it, and payment is received after the change, the time of supply is the earlier of the payment date and the invoice date; if payment came before the change, it is the payment date. It also says GST is levied on supply, so goods supplied on or after the revised rates are charged at the new rates, even if they were already in stock. For marketplace orders, ask your accountant which dates apply to your invoices and payments.
What about the stock you already hold?
EY's note on the September 2025 notifications flags that taxpayers may need to assess whether they must reverse input tax credit under section 18(4) of the CGST Act on inputs and capital goods held in stock on which GST was claimed. The page does not address MRP or transitional rules, so get the full notification text and your accountant's view before you sell through old stock.
How do you keep a record that satisfies an auditor?
Keep one sheet per rate change with the SKU, HSN, old rate, new rate, old price, new price, the date you changed it and who approved it. Save the notification numbers beside it. If a buyer disputes a tax line or a notice arrives, this sheet lets you show exactly what you did and when. For orders placed just before a rate change, use the time-of-supply rule above and your accountant's view to decide the rate on each invoice.
How does the change affect TCS and fees?
Tax collected at source is charged on the net value of taxable supplies, so a lower rate and a lower price both reduce the base. The GST Council's FAQ explains how TCS is computed and that the amount reaches your cash ledger through the operator's GSTR-8. Try the GST TCS calculator with your new numbers.
FAQ
Do I need to change my price when GST changes? No. The law changes the tax, not your price. On Amazon.in sellers keep complete control over pricing. Decide per SKU whether to pass it on or keep margin.
Will Amazon update my GST tax codes for me? Only in part. Amazon said it updates rates and product tax codes automatically wherever possible, for select categories. You remain responsible for each listing.
How do I find the price before GST? Divide the inclusive price by 1 plus the GST rate. At 18%, ₹1,180 divided by 1.18 gives ₹1,000.
Can a price change move my product into a different GST rate? Yes for some goods. Apparel and footwear are taxed at 5% up to a sale value of ₹2,500 and at 18% above it. Recheck the rate after repricing.
What do I do with stock printed with the old MRP? We could not confirm the rule from a primary source. Check Legal Metrology requirements for your category and ask your accountant before relabelling or selling through the stock.
When did the last major GST rate change take effect? The revised rates applied from 22 September 2025, under Central Tax (Rate) notifications dated 17 September 2025, and the date can matter for orders placed before and after it.
What next?
If you have hundreds of SKUs, a price and tax-code clean-up is a bulk job. Blooprint's catalogue and listing optimisation team can run it across Amazon and Flipkart, using the rates your accountant confirms.
How we help sellers with this
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Related guides
- GST rate cuts for sellers
- GST calculator for sellers
- GST rate finder for products
- GST TCS calculator
- Prior price 30-day rule India
- GST Rule 14A 3-day registration
Want this handled for you?
Blooprint Automation is an Amazon SPN verified partner and Amazon Ads Advanced Partner in Bengaluru. We manage seller accounts, catalogues and ads on Amazon, Flipkart, Myntra, Meesho and quick commerce. Book a free audit and we will tell you what to fix first.
Sources
- https://www.ey.com/en_in/technical/alerts-hub/2025/09/cbic-issues-notifications-giving-effect-to-the-recommendations-made
- https://www.business-standard.com/companies/news/amazon-gst-storefront-india-tax-cuts-festive-sales-125092200767_1.html
- https://comtax.wb.gov.in/GST/GST_PPU/Monthly%20GST%20Updates%5BPart%20B%5D_Rate_September%202025_20251008.pdf
- https://www.gstcouncil.gov.in/sites/default/files/2025-09/faq_0.pdf
- https://www.gstcouncil.gov.in/sites/default/files/2024-02/faqs_tcs.pdf