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Paper Industry Concerned Over Increase in GST on Paper Bags, Cartons and Boxes: IPMA

IPMA is of opinion that an increase in the GST rate on cartons, boxes, bags, packing containers of paper will discourage weaning away consumers from single use plastic.

September 20, 2021

Paper Industry
Mr. AS Mehta, President, IPMA and President & Executive Director, JK Paper Limited

Indian Paper Manufacturers Association (IPMA) has expressed concern over the increase in GST rates on paper bags, cartons, boxes, and other packaging media which according to the association will make it expensive for consumers to shift away from single-use plastic.

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The GST Council, in its 45th meeting held on 17th September 2021, has recommended an increase in the GST rate on cartons, boxes, bags, packing containers of paper, etc. from 12% to 18%.

According to the Indian Paper Manufacturers Association (IPMA), this recommendation of the GST Council is surprising and not in sync with the move of the Government towards a ban on the use of single-use plastic. Recognizing the global menace of single-use plastic which is not biodegradable, India had earlier given an international commitment to ban all single-use plastic by 2022. Last month, towards this endeavor, the Government of India amended the Plastic Waste Management Rules prohibiting the manufacture, sale, and use of several single-use plastic commodities from 1st July 2022; and also prohibited the use of plastic carry bags with thickness less than 75 microns with effect from 30th September 2021 and 120 microns with effect from 31st December 2022.

Also Read: JK Paper to Set up Corrugated Packaging Paper Plant in Punjab.

IPMA President, Mr. A S Mehta stated that paper is one of the most environmentally sustainable products as it is fully biodegradable, recyclable, and is produced from sources that are renewable and sustainable. Paper provides a viable alternative to single-use plastic in several applications. An increase in the GST rate on paper cartons, boxes and bags will work against the Government’s efforts towards phasing out the use of single-use plastic, he added.