Sections 11 and 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 11 bars anyone from quoting a price, issuing a price list or bill, publishing an advertisement, stating the net quantity of a pre-packaged commodity or expressing any quantity in a transaction except in standard units. Section 12 strikes down any trade custom that lets a person demand or receive more or less than the quantity fixed by weight, measure or number in the contract.
Under section 11(1), no person may quote prices or charges, issue or exhibit price lists, invoices or cash memos, publish advertisements or posters, state the net quantity of a pre-packaged commodity, or express any quantity or dimension in a transaction or for protection, otherwise than in standard units of weight, measure or numeration. Section 11(2) exempts export of goods, things or services. Under section 12, any custom, usage, practice or method that permits demanding or receiving a quantity above or below the contract quantity is void. Breach of section 11 is punishable under section 29.
Section 11(1): five things you cannot do in non-standard units
Section 11(1) says no person shall, "in relation to any goods, things or service":
| Clause | Act prohibited unless in standard units |
|---|---|
| (a) | Quote, or make announcement of, whether by word of mouth or otherwise, any price or charge |
| (b) | Issue or exhibit any price list, invoice, cash memo or other document |
| (c) | Prepare or publish any advertisement, poster or other document |
| (d) | Indicate the net quantity of a pre-packaged commodity |
| (e) | Express, in relation to any transaction or protection, any quantity or dimension |
The test in every clause is the same: the quantity must be in accordance "with the standard unit of weight, measure or numeration". The standard units are the ones built up in sections 4 to 8, described in our articles on sections 4, 5 and 6 and sections 7 and 8.
Points to notice:
- Spoken quotes count. Clause (a) covers quoting or announcing a price "by word of mouth or otherwise". A stall-holder who calls out a price per non-standard unit is within the prohibition.
- It is not limited to packaged goods. Clause (d) is specific to pre-packaged commodities, but clauses (a), (b), (c) and (e) cover goods, things and services generally.
- "Protection" is a defined term. Clause (e) speaks of quantity or dimension "in relation to any transaction or protection". Section 2(k) defines protection as using a reading from a weight or measure to decide a step needed to safeguard the well-being of a human being or animal, or to protect a commodity, vegetation or thing.
If you publish price lists, catalogues or ads and want them checked against the Act and the Rules, a legal consultation is a practical way to do it.
How the Rules put this into label terms
Clause (d) is the statutory root of the net-quantity rules on packs. The Packaged Commodities Rules, as amended up to March 2022, say no system of units other than the International System of Units may be used in furnishing net quantity (rule 13(5)) and bar the dozen, score, gross and great gross on a package (rule 13(4)). Section 18(2) adds that an advertisement mentioning the retail sale price of a pre-packaged commodity must carry a declaration of net quantity or number in the prescribed form. See our articles on rule 13 and section 18.
Section 11(2): export exception
"The provisions of sub-section (1) shall not be applicable for export of any goods, things or service." So a price quotation or invoice for an export order may use the units the foreign buyer requires. The exception is tied to export; it does not cover goods sold within India even if they are later shipped abroad by the buyer. The definition of "export" in section 2(d) is "taking out of India to a place outside India".
Section 12: void customs
Section 12 reads: "Any custom, usage, practice or method of whatever nature which permits a person to demand, receive or cause to be demanded or received, any quantity of article, thing or service in excess of or less than, the quantity specified by weight, measure or number in the contract or other agreement in relation to the said article, thing or service, shall be void."
Reading it closely:
- It targets customs, usages, practices and methods "of whatever nature". The wording is wide on purpose.
- The benchmark is the quantity stated in the contract or other agreement. If the agreement says 10 kilograms, a trade practice of adding or withholding a margin cannot justify delivering or receiving more or less.
- The consequence is voidness: the custom has no legal effect. The section itself does not prescribe a penalty. The delivery of short quantity or fraudulent receipt of excess is punishable under section 30.
The Act does not list any such custom by name, and we do not add examples that are not in the text.
The penalty for section 11: section 29
Section 29 says "Whoever violates section 11" is punishable.
| Layer | Penalty |
|---|---|
| As enacted (2010) | Fine up to Rs 10,000; for second or subsequent offence, imprisonment up to one year, or fine, or both |
| After the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force) | Fine up to Rs 50,000; second offence, fine up to Rs 1 lakh; third and subsequent offence, fine up to Rs 2 lakh |
| Jan Vishwas (Amendment of Provisions) Act, 2026 (not in force until notified) | First offence: warning with an improvement notice; second offence: penalty up to Rs 50,000; subsequent offences: not less than Rs 1 lakh but up to Rs 2 lakh |
The 2026 layer is enacted but applies only from the date the Central Government notifies; check the notification. The full comparison is in our article on sections 28 and 29. Sections 11 and 12 themselves are not amended by either Jan Vishwas Act.
Examples
Example 1: a price list. A supplier's price list quotes a per-unit price for cloth without the standard unit of length. Section 11(1)(b) bars issuing or exhibiting a price list otherwise than in standard units, and section 29 is the penalty section.
Example 2: an export quotation. A manufacturer quotes an overseas buyer in the buyer's preferred unit. Section 11(2) makes sub-section (1) inapplicable to export, so the quotation is not caught by the prohibition.
Example 3: a trade allowance. A buyer and seller contract for a set quantity, but a local practice allows the seller to hand over a little less "as usual". Section 12 makes the practice void, and section 30 covers fraudulent short delivery.
Common mistakes
- Thinking only printed material is caught. Clause (a) includes oral quotes and announcements.
- Assuming export means any sale to a trader who later exports. The exception in section 11(2) is for export itself.
- Treating section 12 as a penalty provision. It makes the custom void; penalties sit in section 30.
Need help with price lists, invoices or contracts?
If your price lists, invoices or contracts carry units or trade allowances that might conflict with sections 11 and 12, we can review them with you. Start with a legal consultation and share a sample document.
Key takeaways
- Section 11(1) bars quoting, price lists, invoices, advertisements, net-quantity statements and quantity expressions otherwise than in standard units.
- Section 11(2) exempts export of goods, things or services.
- Section 12 makes void any custom or practice that allows a quantity above or below the contract quantity.
- Penalty for breaching section 11 is in section 29, revised by the 2023 Jan Vishwas Act and again, from notification, by the 2026 Act.
- Sections 11 and 12 themselves are not amended by the Jan Vishwas Acts.
Read next
- Prohibition of Non-Standard Weights and Measures
- Mandatory Declarations on Pre-Packaged Commodities
- Sections 9 and 10 of the Legal Metrology Act, 2009: Standards, verification and prescribed units
- Section 13 of the Legal Metrology Act, 2009: Director and central officers
Disclaimer: Based on the Legal Metrology Act, 2009 (Act 1 of 2010) as enacted, read with the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force) and the Jan Vishwas (Amendment of Provisions) Act, 2026 (in force only from the date the Central Government notifies), and the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended up to March 2022), as on 30 September 2026. State Legal Metrology rules, later amendments and notifications change; verify the current position before acting.