Archive · 26 Sep 2025
GST Council to Address Notebook Tax Issue
The government is looking into a tax problem with notebooks and textbooks.
Right now, the paper used to make them has a high tax, but the notebooks themselves don't.
This makes things more expensive because companies can't get a refund on the tax they pay for the paper.
The government plans to fix this by either lowering the tax on paper or changing how notebooks are taxed.
This should help make notebooks cheaper for everyone.
The GST Council is expected to discuss the inverted duty structure affecting notebooks and textbooks.
High GST on paper (18%) increases costs despite notebooks being tax-exempt.
Inverted duty structure prevents manufacturers from claiming input tax credit.
The GST Council may reduce paper tax or shift notebooks to a 5% slab.
The aim is to restore the credit chain and lower prices.
- Who
- GST Council
- What
- Likely to address inverted duty structure
- When
- Upcoming meeting
- Where
- India
- Why
- To correct the anomaly and ease price pressures
Manufacturers
Government
Inverted Duty Structure
Manufacturers
Higher paper tax increases costs.
Government
Acknowledges the issue, will address it.
- Issue
- Inverted Duty Structure on notebooks and textbooks
- Current Tax Rate on Paper
- 18%
- GST on Notebooks
- Exempt
- Affected Parties
- Manufacturers, Consumers
- Potential Solutions
- Reduce GST on paper, Shift notebooks to 5% slab
- Expected Outcome
- Restore credit chain and ease price pressures
