The GST Council has recommended changes to the GST rates within the paper sector, creating a new differentiated tax structure. Uncoated paper and paperboard specifically used for exercise books and notebooks are proposed to become GST-exempt, with the rate moving from 12% to Nil. Several raw materials and industrial goods, including various types of wood pulp, pulp-moulded trays, and paper cartons, would see their tax rate reduced from 12% to 5%. Conversely, a wide range of other finished and specialized papers, such as uncoated paper for writing, kraft paper, and coated papers, would have their GST rate increased from 12% to 18%. These adjustments differentiate the tax on paper products based on their use, with educational and raw materials receiving a tax benefit. Also Read: 1. FAQs on decisions of 56th GST Council Meeting 2. Recommendations of 56th Meeting of GST Council
Recommendations for PAPER SECTOR
12% to Nil
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 4802 | Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks |
(12% to 5%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 4701 | Mechanical wood pulp |
| 2. | 4703 | Chemical wood pulp, soda or sulphate, other than dissolving grades |
| 3. | 4704 | Chemical wood pulp, sulphite, other than dissolving grades |
| 4. | 4705 | Wood pulp obtained by a combination of mechanical and chemical pulping processes |
| 5. | 4706 | Pulps of fibres derived from recovered (waste and scrap) paper or paperboard or of other fibrous cellulosic material |
| 6. | 4817 30 | Boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery |
| 7. | 4819 10, 4819 20 | Cartons, boxes and cases of,-
|
| 8. | 4823 | Paper pulp moulded trays |
| 9. | 48 | Paper splints for matches, whether or not waxed, Asphaltic roofing sheets |
| 10. | 48 | Paper Sack and Bio degradable bags |
(12% to 18%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 4702 | Chemical wood pulp, dissolving grades |
| 2. | 4802 | Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non-perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803[other than Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks] |
| 3. | 4804 | Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 |
| 4. | 4805 | Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in Note 3 to this Chapter |
| 5. | 4806 20 00 | Greaseproof papers |
| 6. | 4806 40 10 | Glassine papers |
| 7. | 4807 | Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets |
| 8. | 4808 | Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803 |
| 9. | 4810 | Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets of any size |
Note: The recommendations of the GST Council have been presented in this article containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law. The author is not promoting or confirms or guarantee the final decision of the government to implement these recommendations and same shouldn’t be a cause of action against author to held responsible for any loss by using this information.
Link for article regarding “recommendations for other sectors ”
1. For Food Sector https://taxguru.in/goods-and-service-tax/recommendations-56th-meeting-gst-council-food-sector.html
2. For Fertilizers or Agricultural Sector https://taxguru.in/goods-and-service-tax/gst-council-56th-meeting-key-changes-fertilizer-agriculture-sector.html
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