Corrugated box manufacturers seek cut in GST rates to benefit MSME sector
The South Indian Corrugated Box Manufacturers Association on Tuesday urged the Centre to reduce Goods and Services Tax on corrugated boxes to benefit the micro small and medium enterprises sector.
According to the Association, the MSME sector would face various hardship if manufacturers exit due to the heavy losses caused on account of the steep input cost in the manufacturing of corrugated boxes.
The Goods and Services Tax at 18 per cent on corrugated boxes causes financial stress as payment realisation to the MSME sector takes up to 60 days but payment in terms of the duty to the government is 30 days, the association said in a press release.
The Association also requested the government to take necessary steps to offset the Kraft paper shortage and control the steep increase in the prices of Kraft which accounts to 85 per cent of the cost of corrugated boxes.
The packaging industry is witnessing an increasing demand for corrugated boxes and the Kraft paper price grew by 100 per cent, the release said.
