Finance Minister was critical of paper mills not adhering to the NIL rate supply, despite receiving MIP and other incentives

Finance Minister was critical of paper mills not adhering to the NIL rate supply, despite receiving MIP and other incentives

-Notebook Manufacturers Industry Led by Mr. Anuj Jain Meets Finance Minister to Discuss Key Challenges Facing by Converting Sector
-Minister advised that industry stakeholders should negotiate directly with Paper mills to ensure compliance with government policies

The Pulp and Paper Times | 21st October 2025 | New Delhi:

A delegation from Notebook Manufacturering Industry had a highly productive meeting with the Hon’ble Finance Minister to discuss critical issues confronting the sector. The meeting was made possible through the efforts and guidance of Mr. Anuj Jain from Meerut, who played a pivotal role in facilitating the discussion. Mr. Jain, known to Dr. Laxmi Kant Bajpayee — National Vice President of BJP and Rajya Sabha Member of Parliament — coordinated the engagement and accompanied the delegation, providing valuable direction throughout the meeting.

Among the key points discussed, the delegation highlighted the challenge posed by zero duty and tax on paper imports, to which the Finance Minister clarified that these are part of the existing Free Trade Agreements (FTAs). The issue of domestic mills not supplying paper at NIL GST rate was also raised, and the Minister advised that industry stakeholders should negotiate directly with mills to ensure compliance with government policies. She emphasized that every citizen must adhere to the rules laid down by the government and noted that her ministry is closely monitoring the pricing behavior of mills and other sectors where GST reductions have been implemented. The Minister also informed that the Prime Minister himself is keeping a close watch on the developments.

Addressing the concern regarding notebooks, she reaffirmed that they would continue to remain under the NIL GST rate category, aligning with the Prime Minister’s vision to ensure that students continue to benefit from lower education costs. On the matter of incorrect HSN codes for boards, she termed it a minor issue that would soon be rectified.

Talking to The Pulp and Paper Times, Mr.  A S Mehta, President and Director at JK Paper said, It is going to be very difficult to check misuse of zero rate of GST. In fact, zero rate of GST is only optics because the basic price of the product will increase consequent to reversal of input tax credit by the manufacturer. Infact, note books and exercise books will have higher cost to the extend of 10 to 12% whereas the general impression will be that GST has been reduced to zero % from 12% and the prices will come down.

The Finance Minister further remarked that certain matters, such as policy-level corrections, could be effectively resolved through the GST Council and urged the delegation to take up the issue with their respective State Finance Ministers. She was particularly critical of paper mills not adhering to the NIL rate supply, despite receiving support from the government through mechanisms such as Minimum Import Price (MIP) and other incentives.

Before concluding, the Finance Minister commended the delegation for their unity and the proactive representation of the MSME sector, assuring them that she would “try” to address the concerns raised. The meeting ended on a positive note, with a sense of optimism that the government would consider the industry’s requests for fair treatment and stronger policy enforcement.

“It is going to be very difficult to ensure that the paper is used only for the purpose of note and exercise books when it is supplied at NIL rate of GST. It may take some more time when there will be some amount of maturity in the process and the systems to get used from the manufacturer of the note and exercise books.” Mr. Mehta said.

Recently, GST tax reform has come into effect in our country. The main change announced is that notebooks used by students will attract 0% GST (Nil Rate). It has also been announced that the government can procure the raw material, paper, and board required for notebooks at Nil Rate. We, notebook manufacturers, are ready to sell notebooks to students at the announced Nil Rate under GST. However, GST on paper and board has risen to 18%. Paper mills have not come forward to sell to us at 0%. There is also the possibility of importing paper and notebooks at Nil Rate from abroad, which could benefit large corporates. If these products enter the Indian market, small notebook manufacturers will be wiped out.

The meeting, which lasted for nearly 45 minutes, was attended by Sri Amrut Bhai, Mr. Saravana Kumar, Mr. Abhishek, Mr. Anuj Jain, Mr. Anil Jain, and Mr. Piyush Jain. During the interaction, the delegation brought to the Finance Minister’s attention several pressing issues affecting the paper and stationery trade.
 

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