FPTA Urges Govt to Reconsider GST on Paper & Paperboard, Suggests 5% Slab to Ease End-User Impact

FPTA urges Govt to reconsider GST on Paper & Paperboard, Suggests 5% Slab to Ease End-User Impact
-GST Hike on Paper & Paperboard Sparks Concern Across Printing, Packaging Value Chain
-18% GST on Paper Creates Inverted Duty Structure, Locks Up Crores in Refunds

The Pulp and Paper Times

The Federation of Paper Traders’ Associations of India (FPTA) has urged the government to reconsider its recent decision to raise the GST rate on Paper & Paperboard (Chapter 48) from 12% to 18%, calling it a major shock to the industry and millions connected to it.

In a detailed appeal, the association stressed that paper is an essential commodity used in education, hygiene, and packaging of food and medicine. The sector employs over half a million people directly and supports nearly 2 million livelihoods indirectly. Industry players had expected paper to be placed under the 5% GST slab to boost demand and employment, but the hike to 18% risks burdening end-users, curbing consumption, and straining the value chain.

The FPTA also flagged confusion over differential GST treatment, where paper used for exercise books and notebooks is exempted, while the same grade attracts 18% GST if used for calendars, posters, and stationery. Since it is impossible to distinguish end-use at the point of sale, the association warned this ambiguity could lead to malpractice and genuine traders facing risk. It suggested placing both paper and finished notebooks under 5% GST for simplicity and transparency.

Further, the representation highlighted that while several carton-making and printing activities attract 5% GST, raw material paper is taxed at 18%, creating an inverted duty structure and locking up crores of rupees in refunds. This, it said, will severely impact small and medium converters, printers, and traders by straining working capital. Rationalizing Paper to 5% would streamline the entire value chain, from manufacturing to printing and packaging.

Calling paper a “medium of education and knowledge” revered as Goddess Saraswati and worshipped during Chopda Pujan, the FPTA appealed for a fair GST treatment that would benefit students, households, and businesses alike. The association requested an opportunity to present its concerns in detail and urged the government to restore Paper & Paperboard under the 5% GST slab.

“Your timely intervention will bring immense relief to thousands of paper traders, printers, and converters across India and ensure the continued growth of this vital sector,” said Mehul Mehta, President of FPTA, in the appeal.
 

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