Quick Summary
The Indian Paper Manufacturers Association (IPMA) has expressed concern over the recent GST rate changes on paper and paperboard, stating that the reduction in GST could disadvantage domestic producers while benefiting importers. The association highlighted that the new GST slab, effective from Monday, reduces the tax on uncoated paper and paperboard (HS Code 4802) used for exercise books, notebooks and similar products to nil. While this is intended to reduce costs for consumers, IPMA warned t
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience.
FAQ :
IPMA is concerned that the reduction of GST on uncoated paper to nil could disadvantage domestic manufacturers against importers and potentially increase costs for consumers on products like notebooks.
Domestic manufacturers cannot claim Input Tax Credit (ITC) on their raw materials and inputs when the final product has nil GST. This means they have to absorb these taxes, potentially increasing the final cost of notebooks and exercise books.
Foreign manufacturers exporting paper to India will not be subject to IGST, while domestic producers must still account for input taxes. This makes imports more competitive and could lead to a surge.
IPMA is worried that reducing GST on pulp from 12% to 5% while keeping GST on wood (the main raw material) at 18% could encourage more pulp imports, negatively impacting Indian farmers and leading to higher foreign exchange spending.
IPMA has submitted a memorandum to Prime Minister Narendra Modi, the Finance Minister, and the Commerce Minister, urging them to reconsider the GST structure and address these perceived anomalies.
CAclubindia
