Centre Mandates Display of Retail Sale Price on All Pan Masala Packs from Feb 1, 2026 Under Amended Legal Metrology Rules
The Central Government has introduced a major regulatory change for the pan masala industry by making it compulsory for every pack, irrespective of size or weight, to clearly display its Retail Sale Price (RSP). The mandate, announced through the Legal Metrology (Packaged Commodities) Second (Amendment) Rules, 2025, will take effect from February 1, 2026. This will bring a significant change in the way pan masala items are labeled and tracked nationwide.
The amendment will withdraw the long-standing exemption available to small pan masala packs under Rule 26(a) of the Legal Metrology (Packaged Commodities) Rules, 2011. Under the exemption, packages of ten grams or less were not required to bear statutory declarations, including the RSP.
The Centre has emphasized that this measure is meant to prevent deceptive pricing practices and ensure transparency for customers purchasing any pack size. Manufacturers must make sure that even the smallest units carry full and clear price disclosure.
Another notable change lies in the connection between the RSP declaration and the tax structure governing pan masala. The government is of the view that mandatory RSP printing will directly support the implementation of the proposed RSP-based levy under the GST framework. Smaller packs, often circulated without clear price markings, contributed to valuation disputes and under-assessment of tax.
This step ensures that tax authorities can precisely verify duty liability, strengthen price-based assessment, in line with the national goal of strengthening enforcement on sin-goods by making RSP display mandatory across all pre-packaged units.
The Consumer Affairs Ministry has made it clear that this is part of a broader initiative to strengthen consumer protection, reform packaged-commodity laws, and fill in the gaps caused by size-based exemptions. Owing to this updated structure, every consumer of pan masala, whether buying a single-serve sachet or a large carton, will have access to the same pricing transparency and legal safeguards.
Manufacturers have until February 2026 to reorganize their packaging lines and adhere to the new regulations. Every pan masala pack sold in the market after the deadline must have a clear RSP and all other required declarations outlined by the Legal Metrology regime. Additionally, law enforcement agencies are instructed to keep an eye on compliance.
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