GST 'disparity' poses threat to survival of corrugated box makers: Industry association
GST
Dated:- 20-9-2025
PTI
Kolkata, Sep 20 (PTI) Corrugated box manufacturers have raised an alarm over a sharp inverted duty structure created after the rationalisation of GST rates, and claimed that more than 20,000 MSMEs in this packaging segment are at risk of closure.
While GST on corrugated paperboard boxes has been reduced from 12 per cent to 5 per cent, the rate on its primary raw materials, kraft paper and board, has been raised from 12 per cent to 18 per cent, they said.
Eastern India Corrugated Box Manufacturers said the recent GST revisions have created a severe imbalance.
“This disparity leaves a 13 per cent burden on the indus
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acturers sought their customers' understanding, as this disparity will “inevitably lead to a 5-7 per cent rise in the cost of boxes”.
The association also flagged that cumbersome refund processes, discouragement of automation and barriers to new investment will undermine the government's “Made in India” and “Vocal for Local” initiatives.
“We request the government to restore parity on GST rates on corrugated boxes with paper and boards, so that the industry remains viable and continues to support essential supply chains nationwide,” the statement said.
It stressed that restoring GST rate parity would not impact government revenue, as both inward and outward supplies in the sector are business-to-business transactions where input tax cred
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