Paper mills will levy GST at 18% on Uncoated Paper and Paperboard (4802). Clarification on Nil GST will result in an enhancement of the base price equivalent to its cost

Paper mills will levy GST at 18% on Uncoated Paper and Paperboard (4802). Clarification on Nil GST will result in an enhancement of the base price equivalent to its cost

In a significant development impacting India’s paper sector, Trident Limited, BGPPL, and JK Paper have issued circulars to inform their partners and customers regarding recent changes in Goods and Services Tax (GST) rates, effective from 22nd September 2025.

The Pulp and Paper Times

Trident Limited, in its official communication, highlighted that pursuant to the latest CGST, IGST, and SGST notifications from the Government of India, the GST on Uncoated Paper and Paperboard has been revised from 12% to 18%, applicable on all dispatches from 22nd September 2025, including pending orders. The company further clarified that the government has yet to provide specific instructions on GST for supplies of Uncoated Paper intended for notebooks, exercise books, laboratory books, and graph books. Until such clarification is received, Trident will levy GST at 18% on all such supplies.

The company also noted that following a clarification from the GST Wing of the Ministry of Finance, the reduction of GST from 12% to Nil on Uncoated Paper for notebook manufacturing implies that Input Tax Credit (ITC) will no longer be available for such supplies. 

“As a direct consequence, the amount of previously available ITC shall form part of the production cost of the relevant goods. Accordingly, the Ex-Factory Price of uncoated paper for notebooks shall be increased to reflect the change in applicable tax credit and the resulting adjustment in production cost and revised Ex Mill is informed accordingly. This adjustment is necessitated by statutory amendment and agree to abide by the revised pricing structure so long as the GST rate on such supplies remains at Nil.” Trident said in its circular dt 19 Sept 2025 

BGPPL, in a separate circular, echoed the revised rates following the GST Council’s decision on 3rd September 2025 and the subsequent notification dated 17th September 2025. Effective from 12:00 AM on 22nd September 2025, BGPPL has outlined the following changes under Chapter 4802 and 4810:

• GST on Uncoated Paper and Paperboard for exercise books, graph books, laboratory notebooks, and notebooks has been reduced from 12% to Nil. However, the base price will be adjusted to reflect the non-availability of ITC.
• GST on other Uncoated Paper and Paperboard used for writing, printing, or graphic purposes (excluding the above) has increased from 12% to 18%.
• GST on Coated Paper and Board has also increased from 12% to 18%.

BGPPL has urged all stakeholders to update price lists and billing systems to ensure seamless implementation of the revised GST rates and emphasized the importance of prompt compliance with statutory requirements.

JK Paper, in its circular, advised customers to lift existing orders before 21st September 2025 to avail of the existing 12% GST rate. From 22nd September 2025 onwards, all pending and future orders of Uncoated Paper under HSN Code 4802, including supplies for notebooks, exercise books, laboratory books, and graph books, will be billed at 18% GST. 

JK Paper further stated that if the government issues a notification on applying Nil GST for paper used in the notebook/exercise book segment, JK Paper will enhance the base price equivalent to its cost on account on non-availability of Input Tax Credit on such supplies.

JK Paper emphasized that this measure is intended to ensure uninterrupted supplies while remaining fully compliant with future government directives.

Industry experts have noted that this GST revision may impact pricing and supply chains across the paper sector, particularly affecting educational and printing materials. Companies are now preparing to align their billing systems and update pricing strategies in line with the government notifications.

The paper industry, which relies heavily on both domestic and imported inputs, is expected to monitor further clarifications from the GST Department regarding end-use supplies, especially for notebooks and related educational materials.
 

Web Title: Paper mills will levy GST at 18% on Uncoated Paper and Paperboard (4802). Clarification on Nil GST will result in an enhancement of the base price equivalent to its cost