The Department of Consumer Affairs, under the Ministry of Consumer Affairs, Food and Public Distribution, has issued the Legal Metrology (Packaged Commodities) Second (Amendment) Rules, 2025 which makes the display of the Retail Sale Price (RSP) mandatory on all pan masala packs.
The amended rules will come into force on 1 February, 2026. From this date, all manufacturers, packers, and importers of pan masala must ensure full compliance.
Key Changes Introduced
The notification significantly amends the Legal Metrology (Packaged Commodities) Rules, 2011, by addressing a previous exemption:
Pan masala packs of every size and weight must now display the Retail Sale Price (RSP) on their labels. Small packs of 10 grams or less, which were previously exempted, must now print the RSP.
All pan masala packages must display every declaration required under the Legal Metrology (Packaged Commodities) Rules, 2011.
The amendment achieves this by inserting a new proviso in Rule 26, Clause (a) of the 2011 Rules, which states that the provisions of this clause (regarding certain exemptions) shall not apply to pan masala. This effectively withdraws the earlier proviso under Rule 26(a) that allowed small pan masala packs to avoid certain declarations.
Consumer Protection and GST Compliance
This amendment is intended to enhance consumer protection and support GST compliance:
By mandating clear pricing information for every pack size, the rules prevent misleading or deceptive pricing on smaller packs and enable consumers to make better informed purchasing decisions.
Mandating the RSP on all packages facilitates the effective implementation of RSP-based GST levy on pan masala. This enables seamless enforcement of GST Council decisions and proper tax assessment and revenue collection across all pack sizes, including the smallest units.