“Paper mills are supplying at 0% GST but with a increased price to the extent of their Input credit loss,” says Mr. Shailendra Gala of Navneet Education

“Paper mills are supplying at 0% GST but with a increased price to the extent of their Input credit loss,” says Mr. Shailendra Gala of Navneet Education

As the GST new tax rate has been implemented for the last five months, The Pulp and Paper Times speak to Mr. Shailendra Gala, Director -Navneet Education Limited for his views on the post-GST regime impact on notebook manufacturers. this views were taken on 21 January 2026

The Pulp and Paper Times

Q: The GST Council’s decision has created a dual structure — Nil GST for notebooks and 18% for other uncoated writing/printing papers. How should mills and dealers practically distinguish between these categories in real-time billing?

Mills are already taking declaration from 0% buyers and doing the billing so they are able to distinguish based on GST charged. For Dealers it is difficult if they buy for stock.

Q: Leading paper mills have already cautioned dealers against assuming all uncoated paper is Nil rated. How do you see this confusion impacting compliance across the industry?

There is no confusion as the law is clear.

Q: From Today, how the Exercise Book manufacturers are facing the difficulties amid GST 2.0 implementation 

Basic confusion was limited to transitional period for Stock of Finished goods and raw materials in hand. For new buying, every manufacturer knows that as per GST law now no GST rebate is available for any kind of raw material or consumables. Exercise Book manufacturers are facing issues of pricing uncertainty and re-negotiation of existing contracts.

Q: As the Government has not issued any guidance or nonfiction about GST parity till date, Manufacturers are compelled to pass this on to consumers, raising MRP of notebooks by 15–20%. Can we see the price rise in the near future?

Yes there can be a price change based on Input cost variance.

Q:  Paper mills are unwilling to supply at 0% tax. What is the current status amid notebook converters?

Paper mills are supplying at 0% GST but with a increased price to the extent of their Input credit loss so the difference between a 18% buying and 0% buying is not significant.

Q: Do you think that compliance malpractice can be engaged as there is no difine about end use of paper or in cases of mixed supplies

Yes, absence of clear end-use definition creates scope for disputes and unintentional non-compliance, particularly in mixed or common supplies.

Q:  Imports of paper from China, Indonesia, and ASEAN nations may become cheaper than domestic paper once 18% GST is factored in. What do you say about this?

Yes it has happened and even Import of Note Books will come which will effect the Domestic Industry which is a bigger fear. This will put additional pressure on domestic mills unless safeguards are applied.

Q: any other message for Paper Makers and Government.

Simplify the rules. The industry urgently needs clear GST clarification on documents to be maintained for 0% classification and end-use to avoid future litigation.
 

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