New Delhi, Dec 3 The government on Wednesday made it mandatory for all pan masala packs of every size and weight to display the retail sale price (RSP) and all other declarations required under the Legal Metrology (Packaged Commodities) Rules, 2011, effective from February 1.
The Department of Consumer Affairs has notified the Legal Metrology (Packaged Commodities) Second (Amendment) Rules, 2025.
“The amended rules will come into force on 1 February 2026, from which date all manufacturers, packers and importers of pan masala must ensure full compliance,” said the Consumer Affairs Ministry.
Small packs of 10 grams or less, which were previously exempted, must now print the retail sale price on their labels. All pan masala packages must display every declaration required under the Legal Metrology (Packaged Commodities) Rules, 2011.
“The previous proviso under Rule 26(a), which allowed small pan masala packs to avoid certain declarations, has now been withdrawn with the insertion of a new proviso specific to pan masala,” according to the notification.
“The amendment significantly strengthens consumer protection by ensuring that buyers have transparent and clear pricing information for every pack size, prevents misleading or deceptive pricing on smaller packs, enables consumers to make better informed purchasing decisions,” according to the ministry.
Currently, the Goods and Services Tax (GST) at 28 per cent is levied on tobacco and pan masala. On top of that, a compensation cess at a varied rate is levied. The levy of compensation cess was extended by 4 years till March 31, 2026, and the collection is being used to repay the loan that the Centre took to compensate states for the GST revenue loss during the Covid period.
Finance Minister Nirmala Sitharaman is slated to introduce two bills in the Lok Sabha to replace GST compensation cess with an excise levy to ensure that the high tax on sin goods such as tobacco and pan masala is maintained at current levels.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor