Indian Paper Industry Raises Alarm Over GST Hike, Warns of Consumer Price Increases and Impact on Literacy

The Indian Paper Manufacturers Association (IPMA) has voiced serious concerns over the GST increase on paper and paperboard from 12% to 18%, calling it a regressive measure that contradicts government goals on affordability, literacy, and sustainability. IPMA warns the hike will lead to cost-push inflation across education, packaging, and MSME sectors, with notebook prices for schoolchildren expected to rise by 3–5% and textbooks by over 6%. The industry also highlights an inverted duty structure, where GST on paper raw materials has risen sharply while GST on finished paper-based packaging products has lowered, burdening MSMEs with locked-up working capital exceeding ₹500 crore. Furthermore, a reduced IGST on imported uncoated paper favors overseas suppliers, undermining domestic manufacturers and conflicting with “Make in India” and “Aatmanirbhar Bharat” initiatives. IPMA urges the government to reconsider to protect consumers, small businesses, and the sustainable growth of India’s paper industry.

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