Telangana Paper Merchants' Association, organised a Press Conference, today at The Plaza Hotel, Begumpet. Abhishek Vijayawargi, President, Telangana Paper Merchants' Association (TPMA); Ashish Jain Bhansali, Secretary, TPMA; T Kishan Singh, Past President, TPMA; and Nirmal Kuhad, Vp, Federation of Paper Traders Associations of India (FPTA);  addressed media about the recent revision in GST rates on paper and paper products.

Rollback of GST on Paper & Boards from 18% to 5%

Paper is not a luxury product; it is an essential commodity used daily by students, professionals, publishers, printers, packaging industries, and society at large. The recent increase of GST to 18% has created a disproportionate burden on education, environment, and essential industries.

1. Price Burden Example

The basic price of paper at ₹70/kg would cost:

At 5% GST → ₹73.50/kg, At 18% GST → ₹82.60/kg, This clearly shows a ₹9/kg increase, i.e., nearly 12% extra burden, which gets multiplied in notebooks, textbooks, exam papers, packaging, and daily-use products.

2. Raw Material

The paper industry in India does not cut forests — it farms its own trees, much like sugarcane or tomatoes are cultivated. Species such as subabul, casuarina, bamboo, and eucalyptus are grown on barren lands and harvested every 4–5 years. Mills also distribute saplings to farmers (e.g., IIT Andhra’s model) to promote green cover and rural income, ensuring the industry remains 100% sustainable and eco-friendly. 71% of paper is made from recycled wastepaper. 21% from agricultural residues like bagasse and wheat straw. Only 8% from fresh pulp. Waste Paper, the main raw material for recycled paper, is taxed at 5% GST. However, the finished paper & boards are taxed at 18% GST, creating an inverted duty structure in India:

3. Burden on Students & Competitive Exams

Students preparing for EAMCET, Civil Services, MBBS, CA, and other competitive exams consume 250–300 kgs of paper per term (books, notes, mock tests, exam sheets, copier paper). With GST at 18%, education becomes costlier for 24 crore children and youth across India, directly contradicting the government’s push for affordable and inclusive education.

4. Environmental Contradiction – Paper Bags & Recycling

Paper bags are now widely used in shopping, e-commerce, groceries, and deliveries, replacing plastic. Most of these paper bags are made of recycled wastepaper, which is eco-friendly. Taxing recycled paper bags at 18% GST while discouraging harmful alternatives is a direct contradiction. On one hand, the government is promoting eco-friendly paper use, but on the other hand, imposing 18% GST makes paper bags costlier than plastic or other harmful substitutes.

5. Packaging Contradictions – FMCG, Food & Pharma

Paper & board packaging is critical for: FMCG packaging (soaps, daily essentials) Food packaging (idli, dosa, bakery products, groceries, takeaways) Pharma packaging (medicine cartons, leaflets, strips) For example: Medicines are taxed at reduced GST, but medicine packaging paper is taxed at 18% → leading to an unavoidable cost increase for patients. Idli, dosa and other food items packed in a simple paper bag now carries 18% GST, making even common affordable food more expensive.

6. International Practices

In most developed nations, paper used for education, recycling, and packaging is taxed at 5% or below, often zero for educational paper. India taxing it at 18% makes us an outlier, while globally, governments encourage paper usage for both education and sustainability.

Conclusion: Rollback of GST on paper and boards from 18% to 5% is not a concession but a corrective necessity.

It will: Reduce education costs for students. Encourage recycling and eco-friendly paper bags. Support FMCG, pharma, and food industries with affordable packaging. Align India with global best practices. Paper is education. Paper is sustainability. Paper is the future. Taxing it at 18% is unjust and must be corrected immediately.

Correct Anomalies in GST on Notebooks & Textbooks

The second major concern is the anomalous and contradictory GST treatment given to notebooks, textbooks, and the paper used in their production.

1. Notebooks vs Raw Material Confusion

Notebooks (Chapter 4802) are rightly exempted from GST at 0%. However, the paper used to manufacture notebook titles (under Chapters 4804, 4810) continues to attract 18% GST. This creates a fundamental contradiction: The finished product is nil-rated, but The basic raw material is heavily taxed. This has left publishers and notebook manufacturers unable to claim ITC, locking up working capital and increasing costs.

2. Illogical Treatment of Education Material

A student’s notebook is tax free, but a student’s textbook is taxed at 18%. This creates an absurd situation – when a child writes, it is tax-free, but when a child reads, it is taxed. Further, kindergarten and pre-primary books are classified under Chapter 4810 and charged 18%, making early education more expensive for parents.

3. Scope for Malpractices

Paper manufacturers sell all paper at 18% GST, but it is impossible to pre-identify which paper will end up in notebooks versus other uses. This gap encourages misclassification and malpractice. Such a system puts genuine businesses at risk while rewarding loopholes.

4. Compliance Hassle for Industry

Instead of simplifying, the paper sector has been pushed into three confusing slabs – 0%, 5%, 18%. Mills, traders, printers, and publishers are forced to deal with classification disputes, litigation risk, and harassment from authorities. This goes directly against the government’s goal of making GST simple, transparent, and uniform.

5. Broader Impact

Printers, publishers and notebook manufacturers who provide textbooks and textbooks for 24 crore school-going children in India are bearing the brunt of this anomaly. Rising costs due to GST are making education less affordable for families. At a time when India aspires to become a knowledge economy and is aligning with developed nations where paper for education is tax-free, our policies are penalising the very foundation of learning.

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Conclusion: Paper used for notebooks and textbooks must be aligned to same GST, to match the treatment of the finished product. Only then will anomalies, malpractices, and compliance hassles be eliminated, ensuring that education remains affordable, fair, and tax-free at all stages.