By Ashok kumar Nirbhay
New Delhi. Under GST Reforms 2.0, the central government has increased the GST rate on paper and paperboard from 12 percent to 18 percent. Following this decision, deep concern is being witnessed in the education sector, printing and publishing industry, as well as among small enterprises. Industry representatives argue that this hike will directly burden students and parents, while also weakening the spirit of the ‘Make in India’ campaign. The Offset Printers Association along with several state-level organizations have urged the government to immediately reduce GST on paper to ensure education remains affordable and accessible. According to these organizations, the hike will make notebooks, books, copies, and other educational material more expensive, adversely affecting millions of students across the country.
On this issue, Raj Kumar Sachdeva, former president of the Delhi State Copy Manufacturers Association, has also demanded immediate government intervention. He said the government recently took a commendable step by including notebooks and exercise books (HSN 4820) in the 0% GST slab. However, the practical problem is that paper used for notebook manufacturing (HSN 4802) is still being sold at 18% GST. As a result, notebook manufacturers are forced to purchase paper with 18% GST while selling finished notebooks at 0%.
Sachdeva explained that due to the inverted tax structure, input tax credit or refunds are not available, which keeps increasing the cost of production. Consequently, small and medium enterprises (MSMEs) are facing heavy losses compared to large corporate paper mills. This not only adds financial pressure on students and parents but also weakens employment opportunities and the viability of locally operating enterprises.
The industry has put forward three key demands before the government. First, it should be clarified that paper and paperboard used in notebook and exercise book manufacturing will also fall under the 0% GST category. Second, a simplified compliance mechanism should be introduced so that paper mills can confidently issue bills at 0% GST. Third, it must be ensured that small and medium notebook manufacturers are not left at a disadvantage against large paper mills.
Experts warn that if this anomaly is not addressed, millions of students will be forced to buy costly notebooks, and thousands of small manufacturers may face business crises. On the other hand, timely relief would provide direct benefits to the education sector and further strengthen the government’s ‘Make in India’ initiative. Industry leaders believe that reducing the tax burden on education-related materials is the only way to empower the nation’s future.
