Paper industry warns of price rise for consumers due to GST hike

The new Delhi warned that the last GST hike on the Indian paper industry, paper and cardboard on the 25th of September (PTI) will have a comprehensive negative impact on consumers and MSMes and lead to higher paper product prices.

The Indian Paper Manufacturers Association, which is called a step fell from 12 percent to 18 percent on paper paper, said that the increase will have widespread reflections between training, packaging, MSMes and consumers. “Paper is not a luxury, but a necessity.

Education is an integral part of literacy and environmentally friendly packaging. We were expecting to be brought under 5 percent of the paper to be brought under 5 percent, but instead of 18 percent. This decision will have a comprehensive negative consequences. ”

The GST increase on the widely used input will create a cost between sectors and inevitably increase consumer prices. Paper is used in the packaging of basic goods, foodstuffs, drugs, hygiene products and FMCG.

Pointing to an inverse task structure, the GST in paper, cardboards, sacks and bags made of paper, decreased from 12 percent to 5 percent, the primary raw material GST (paper and cardboard) was increased to 18 percent, he said.

With approximately 90 percent of the kraft and packaging paper used in cardboard and boxes, such an inverse task structure will prevent important working capital for MSMEs, especially for MSMEs that form the backbone of the packaging sector.

It estimates that the dinner is over LaAgarwal will be locked with 500 Crore operating capital and forcing small businesses to grapple with repetitive repayment compatibility and operations.

Calling the government to revise the decision, Agarwal said, “The treatment given to the paper industry contradicts the vision of the Prime Minister’s vision that only unnecessary items will rise from 12 percent to 18 percent. We address consumers, MSMEs and the long -term health of the Indian paper industry.” He said.