Government Notifies New Rule Requiring Retail Price on All Pan Masala Packs from 2026

The Department of Consumer Affairs has introduced an amendment that will require every pan masala pack, regardless of its weight or size, to display the Retail Sale Price (RSP) and all mandatory information under the Legal Metrology (Packaged Commodities) Rules, 2011. 

The updated rule, effective from 1 February 2026, removes previous exemptions for very small packs and aims to bring uniformity to labelling practices across the category.

Mandatory RSP Display Across All Pack Sizes

The amendment states that all pan masala products must carry a clearly printed Retail Sale Price on their labels.

Earlier, packs of 10 grams or below were exempt from certain disclosures, but this exemption has now been withdrawn. As a result, even the smallest units will be required to carry the full set of declarations mandated by the Legal Metrology rules.

Revision to Rule 26(a)

The earlier proviso under Rule 26(a) has been replaced by a new clause specifically applicable to pan masala.

Manufacturers, packers and importers must ensure compliance with the updated requirements from February 2026, as outlined in the government notification GSR 881(E).

Focus on Transparent Pricing

According to the department, including RSP on all packs strengthens consumer awareness by reducing the possibility of unclear or inconsistent pricing.

This measure is intended to give buyers a clearer understanding of product prices and support informed purchasing decisions across different pack sizes.

Support for GST Implementation

Requiring RSP on all packs will also help in applying the RSP-based GST levy on pan masala.

With uniform price declarations, tax authorities can more effectively enforce GST Council decisions and maintain consistent assessment and revenue collection, including for smaller packs that were earlier exempt.

Read More: Lok Sabha Clears Central Excise Amendments to Sustain Tax on Tobacco and Pan Masala.

Conclusion

The updated rules bring all pan masala packs under a single labelling standard, ensuring that retail price and other mandatory declarations are provided regardless of pack size.

The change aims to enhance pricing clarity for consumers and facilitate smoother tax administration without altering the broader regulatory framework for the sector.

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