What Has Changed: Key Provisions
Under the new amendment, every pack of pan masala including micro-packs of 10 grams or less that were earlier exempt must display the Retail Sale Price on the label. The rules also reinforce that all declarations required under the Legal Metrology (Packaged Commodities) Rules, 2011 must appear on pan masala packaging without exception.
The amendment withdraws the proviso under Rule 26(a) that previously allowed limited labelling exemptions for very small packs, replacing it with a specific proviso that brings pan masala within the full ambit of pack-level disclosures.
Why the Move? Consumer Protection and Fair Pricing
Officials say the step is aimed at strengthening consumer protection by ensuring transparent pricing and preventing deceptive practices on smaller packs. Mandatory RSP helps consumers compare value across pack sizes, reduces the scope for misleading price claims, and empowers shoppers to make informed choices.
Consumer advocates welcomed the change as a practical measure to curb clandestine price variations and to ensure accountability along the supply chain from manufacturers through distributors to retailers.
GST Enforcement and Revenue Implications
Beyond consumer protection, the amendment has direct implications for GST administration. The mandated printing of RSP on all packs aligns with the RSP-based method of GST levy applied to pan masala, facilitating uniform tax assessment and reducing leakages across pack sizes.
Authorities note that consistent RSP labelling will help enforcement agencies and tax authorities verify compliance, standardise invoicing, and streamline revenue collection for both central and state governments.
Compliance Timeline and Stakeholder Impact
The amendments will come into force on 1 February 2026. From that date, all manufacturers, packers and importers of pan masala must ensure their product labels comply with the revised rules. Non-compliance may attract penalties under the Legal Metrology Act and related enforcement provisions.
Industry stakeholders including small-scale packers and informal manufacturers who rely on micro-packs will need to update packaging lines, consult label design teams, and reconcile pricing declarations with their accounting systems to meet the deadline.
Implementation Challenges and Industry Response
Some manufacturers and trade associations have voiced concerns about lead times, printing costs for micro-packs, and the logistical burden on small enterprises. Regulators, however, have indicated there will be awareness drives and stakeholder consultations to ease the transition.
Technical compliance will require accurate RSP computation inclusive of taxes and fees, clear font and placement on small labels, and mechanisms to ensure RSP integrity through the distribution chain.
Broader Regulatory Context
The amendment is part of a wider push by the government to enhance consumer rights and formalise the packaged-goods sector.
