Archive · 22 Sep 2025
Notebooks Likely to Cost More Despite GST Reduction
The government is making notebooks cheaper by removing a tax on the paper used to make them.
However, the people who make notebooks will not be able to get a refund for the taxes they pay on their raw materials.
This means they will have to add those taxes to the price of notebooks.
A paper industry group is worried that this will make locally made paper more expensive than paper that comes from other countries.
They want the government to change the tax rules to help local businesses.
GST on uncoated paper used in notebooks reduced to zero.
Manufacturers may not be able to claim input tax credit, leading to higher costs.
IPMA fears domestic paper products will be less competitive due to import advantages.
The GST rate on wood is significantly higher than the rate on pulp, creating further challenges.
The IPMA is requesting changes to the GST structure to address these issues.
- Who
- Paper manufacturers and consumers
- What
- Potential increase in notebook prices due to tax changes
- When
- From Monday, September 22, 2025
- Where
- India
- Why
- Loss of input tax credit for manufacturers and increased import competition.
Manufacturers' Perspective
Government's Perspective
Tax Impact
Manufacturers' Perspective
Manufacturers will lose input tax credit, increasing costs.
Government's Perspective
No explicit stance mentioned in the article.
Import Competition
Manufacturers' Perspective
Zero IGST on imports disadvantages domestic manufacturers.
Government's Perspective
No explicit stance mentioned in the article.
- Affected Products
- Uncoated paper and paperboard used in notebooks
- GST Change
- Reduced to zero for certain paper products
- Industry Concerns
- Loss of input tax credit, increased costs, and import competition
- Association
- Indian Paper Manufacturers Association (IPMA)
- IPMA Request
- Impose 18% IGST on paper imports
- Raw Material Issues
- Higher GST on wood (18%) than pulp (5%)
- Downstream Impact
- Increased costs for consumers and user industries
Sources
GST Disparity Endangers Future of India’s Corrugated Box Sector
Notebooks to cost more despite GST reduction to nil
GST 2.0 To Kick In From Monday, Goods And Services To Get Cheaper
CCPA can take up anti profiteering matter suo-moto
