The Federation of Paper Traders Associations of India (FTPA) is calling for a unified 5% Goods and Services Tax (GST) on all paper and paperboard products. This move aims to address the current 'inverted duty structure' where raw materials face higher taxes than some finished goods, creating financial strain, particularly for MSMEs. The association also highlighted the industry's strong sustainability credentials, noting that 75% of paper in India is made from recycled waste.
The Federation of Paper Traders Associations of India (FTPA) has urged the government to rationalise the GST on paper and paperboard products to a uniform 5% slab under Chapter 48, highlighting concerns over the inverted duty structure impacting the industry.
At the association's 64th Annual Genera
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FAQ :
The paper sector is demanding a uniform 5% GST on all paper and paperboard products to simplify the tax structure and avoid an inverted duty situation.
It refers to a situation where the tax on inputs (raw materials) is higher than the tax on finished goods, which creates financial difficulties for manufacturers and traders.
Paper for exercise books, notebooks, and maps has a NIL GST, while paper for calendars, diaries, posters, and stationery attracts an 18% GST.
A uniform 5% GST would simplify the value chain, make the industry more efficient, support MSMEs, boost growth, and ease compliance.
The FTPA states that the industry is highly sustainable, with 75% of paper produced from recycled waste, and the rest sourced from plantations and agricultural residues.