Indian Paper Manufacturers Association Seeks 18% IGST to Protect Domestic Industry Amid GST Changes

The Indian Paper Manufacturers Association (IPMA) has raised concerns about recent GST reforms that may disadvantage domestic paper producers. With the GST on uncoated paper and paperboard for exercise books and notebooks reduced to zero, importers also benefit from a nil IGST rate, increasing unfair competition from foreign suppliers. IPMA President Pawan Agarwal highlighted that while pulp GST has been cut from 12% to 5%, wood—the key raw material tax—remains at 18%, potentially boosting costly pulp imports and impacting local farmers. The association warned that eliminating input tax credit (ITC) for manufacturers on raw materials due to exempt final products will increase production costs, causing notebooks to become more expensive. IPMA has submitted a memorandum urging the government to impose an 18% IGST on paper imports and review tax anomalies to safeguard investments, domestic capacity, and competitiveness against rising predatory imports.

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