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The Offset Printers Association (OPA), which represents India's printing and packaging sector, has raised strong objections to the government's proposed GST hike on paper and paperboard from 12% to 18%, set to take effect on September 22, 2025. OPA leaders warned that the move would significantly r
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FAQ :
The Goods and Services Tax (GST) on paper and paperboard is set to increase from 12% to 18% on September 22, 2025.
The primary concern is that the GST increase will significantly raise the cost of textbooks and educational materials, making education less affordable for millions of students.
Industry experts predict that textbook prices could rise by 10-15% as a direct result of the increased GST on paper.
An inverted duty structure occurs when the tax on raw materials (like paper at 18%) is higher than the tax on finished goods (like paperboard cartons at 5%). This can trap working capital and reduce competitiveness for printing businesses.
The OPA is urging the Finance Ministry to reconsider the GST hike, suggesting a reduction to 5% for paper and paperboard to match cartons, and to create a uniform GST rate across all paper products.
The OPA warns that the hike could lead to a further decline in paper consumption, create classification disputes, and potentially push 30% of micro and small printing units towards closure within a year.
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