Exercise, notebook manufacturers urge govt to revisit GST rates due to inverted duty structure
GST
Dated:- 22-9-2025
PTI
Kolkata, Sep 22 (PTI) Exercise and notebook manufacturers have urged the Centre to revisit the new GST rates, arguing that the inverted duty structure after the rationalisation would lead to escalation of production costs and inability to pass on benefits to consumers.
The GST Council, comprising the Centre and states, had decided to reduce tax rates on goods and services from September 22.
The Exercise Book Manufacturers Association said “the Council has recommended 'nil' rate for exercise books, graph books and notebooks as well as paper used to make them”.
“While the noble intent of the government is to
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lternative mechanism be provided for claiming full refund of input taxes.
According to them, the GST rate reduction on notebooks and paper for notebooks to 'nil' would not make those cheaper in the hands of consumers.
The market size of notebooks and exercise books in the country stands at around Rs 10,000 crore.
The GST for notebooks and exercise books was 12 per cent before the reforms.
The rate structure post the rationalisation makes the notebooks industry as the only one whose primary raw material in the value chain are taxed at 18 per cent, and the end product exempt from tax, resulting in an inverted duty structure with no scope for claiming any refund, they said.
The GST rate on wood has remained at 18 per cent and that on pulp
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