GST reduces on notebooks but expect no relief on prices
Kolkata: The GST on notebooks, exercise books and other stationery items, such as pencils, have been slashed from 12 per cent to nil but GST on most raw materials used to make the stationery has gone up to 18 per cent, a hike that may not allow customers to understand the full benefit of the tax cut. Instead, experts and manufacturers said, there would be a price rise of these products, regularly used by students.
All India Notebook Manufacturers' Association (AINMA) has also approached the ministries of finance and commerce and industry, flagging concerns about large importers' plan to flood Indian markets with finished notebooks from ASEAN countries.
According to experts, the zero-GST on notebooks under the new structure makes them ineligible for claiming input tax credit, thus embedding the taxes in the manufacturer's production cost that has to be borne by end-consumers.
Academic sessions at schools and colleges here usually start in March but manufacturers start buying paper, paperboard and other raw materials in Oct and Nov. Notebook manufacturers' associations have appealed to the Centre, saying all paper products, including notebooks, be either subjected to 5 per cent GST or an alternative mechanism be provided for manufacturers to claim a full refund of input taxes.
The industry has also recommended zero-GST for wood procured by paper manufacturers and an 18 per cent GST on the import of paper to discourage dumping and incentivise Indian paper mills to invest in sustainable plantations while supporting livelihood.
