GST Rates Changes in the Paper Sector – 56th GST Council Meeting
The 56th meeting of the
GST Council held on 3rd September 2025 introduced significant changes in
the paper sector. These changes are part of the wider rationalization of
tax rates aimed at providing relief to certain categories of goods while
aligning other products with revenue-neutral rates. The new GST rates (except
for specified tobacco products) will come into effect from 22nd September
2025.
Here’s the table format for the Paper Sector GST
rate change:
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff item
|
Description
of Goods
|
Existing
GST Rate
|
Revised
GST Rate
|
|
1
|
4802
|
Uncoated
paper and paperboard used for exercise book, graph book, laboratory notebook
and notebooks
|
12%
|
Nil
|
Here’s the structured GST Rate Change Table for the
Paper Sector (12% → 5%):
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff item
|
Description
of Goods
|
Existing
GST Rate
|
Revised
GST Rate
|
|
1
|
4701
|
Mechanical
wood pulp
|
12%
|
5%
|
|
2
|
4703,
4704
|
Chemical
wood pulp, soda or sulphate, other than dissolving grades
|
12%
|
5%
|
|
3
|
4705
|
Chemical
wood pulp, sulphite, other than dissolving grades
|
12%
|
5%
|
|
4
|
4705
|
Wood
pulp obtained by a combination of mechanical and chemical pulping processes
|
12%
|
5%
|
|
5
|
4706
|
Pulps
of fibres derived from recovered (waste and scrap) paper or paperboard or of
other fibrous cellulosic material
|
12%
|
5%
|
|
6
|
4817
30
|
Boxes,
pouches, wallets and writing compendiums, of paper or paperboard, containing
an assortment of paper stationery
|
12%
|
5%
|
|
7
|
4819
10, 4819 20
|
Cartons,
boxes and cases of – (a) Corrugated paper or paper boards; (b) Non-corrugated
paper or paper board
|
12%
|
5%
|
|
8
|
4823
|
Paper
pulp moulded trays
|
12%
|
5%
|
|
9
|
48
|
Paper
splints for matches, whether or not waxed; Asphaltic roofing sheets
|
12%
|
5%
|
|
10
|
48
|
Paper
sacks and biodegradable bags
|
12%
|
5%
|
Here’s the structured GST Rate Change Table for the
Paper Sector (12% → 18%):
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff item
|
Description
of Goods
|
Existing
GST Rate
|
Revised
GST Rate
|
|
1
|
4702
|
Chemical
wood pulp, dissolving grades
|
12%
|
18%
|
|
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]
|
12%
|
18%
|
|
3
|
4804
|
Uncoated
kraft paper and paperboard, in rolls or sheets, other than that of heading
4802 or 4803
|
12%
|
18%
|
|
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
|
12%
|
18%
|
|
5
|
4806
20 00
|
Greaseproof
papers
|
12%
|
18%
|
|
6
|
4806
40 10
|
Glassine
papers
|
12%
|
18%
|
|
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
|
12%
|
18%
|
|
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
|
12%
|
18%
|
|
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
|
12%
|
18%
|
Transitional Clarifications (FAQs –
Council Press Release)
- Effective
Date: New rates apply from 22nd September 2025.
- Time
of Supply: If goods are supplied before rate
change but invoice/payment is later → Section 14 of CGST Act applies.
- Input
Tax Credit (ITC): ITC already availed remains valid.
However, if supply becomes exempt, ITC reversal is required after 22nd
Sept 2025.
- Imports:
IGST will follow new rates.
- E-Way
Bills: No need to cancel/regenerate for goods already
in transit.
Overall Impact on Paper Industry
- Education
Sector: Notebooks & exercise books to
become cheaper, reducing burden on students and households.
- Recycling
Sector: Relief for pulp and recycled paper
industries through rate reduction to 5%.
- Packaging
Industry: Cartons, trays, sacks, and
eco-friendly paper bags will see lower taxes, promoting sustainable
packaging.
- Printing
& Specialty Paper: Higher GST (18%) will increase
costs for high-quality writing, coated, and kraft papers.
Conclusion
The GST Council has taken a differential approach
in the paper sector:
- Essential
& eco-friendly items → Rate reduced (Nil
or 5%)
- Standard
& high-end grades → Rate increased (18%)
This ensures affordability for the common man &
students, while balancing revenue from industrial and commercial paper
usage. Businesses in the sector should carefully assess transitional
provisions, especially regarding ITC, stock in hand, and pricing strategies
from 22nd September 2025 onwards.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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