The Indian Paper Manufacturers Association (IPMA) has expressed deep concern over the recent GST hike on paper and paperboard from 12% to 18%.
In its representation to the Finance Ministry, IPMA outlined the significant challenges this poses to domestic manufacturing and the affordability of educational materials:
Rising costs of books run contrary to the government’s goal of making education more affordable and accessible.
- Inverted duty structure in the carton and packaging segment (18% input vs. 5% output) leads to blocked working capital and delayed refunds
- Notebooks fall under nil GST while paper remains at 18%, rising notebook prices instead of going down.
- Misclassification of paper as a premium commodity disregards its fundamental role as an essential medium for education and communication.
With the matter now escalated to the Honorable Prime Minister’s Office, the industry remains hopeful for a positive resolution in the interest of students, educators, and India’s sustainable paper ecosystem.