Paper and paperboard and articles of paper pulp are classified under HSN Code chapter 48. Therefore Paper Industry has come to grip with concept of new tax system. But final test will be after GST roll out. And customers want direct sales rather than have stocks routed through depots. In this article, you look impact of GST rates on printing and paper industry. Check for GST HSN Code for Perfume, Cosmetics and Toiletries.
GST impact on Paper Industry
Generally, impact of GST on paper industry is by all accounts positive as necessities. For example Newspaper, stamps and other legal materials are taxed at zero percent. GST will also promote wide tax net. Hence, Paper based stationery products under this chapter attract different GST rates as follows.
GST is expected to increase tax on paper trade from 13 per cent to 18 per cent. It includes CST, excise duty and VAT. Thus it affect profit margin for traders.
Impact of GST on Printing Sector
Multiple taxes badly affect in growth of printing sector. GST will bring single point taxation in country. And also simplify taxation system and flow of input credit under GST regime will benefit printing industry.
Paper Products Not Tax under GST
Like, Judicial, Non judicial stamp papers and Court fee stamps are sold by Government Treasuries. And also sold by Vendors who are authorised by Government. However, Postal items, like envelope, Post card etc., sold by Government. And rupee notes sold to Reserve Bank of India & Cheques, lose in book form is not taxable under GST.
Paper Products Taxable at 5% GST Rate
However, Newsprint, in rolls or sheets is taxable at 5% GST rate. This is only paper product taxed under this rate.
Paper Products Taxable at 12% GST Rate
Uncoated paper, paperboard, Kraft paper, greaseproof paper, glassine paper and composite paper, etc.-HSN code 4802, 4804, 4805, 4806 20 00, 4806 40 10, 4807, 4808, 4810, 4817
Aseptic packaging paper- HSN code 4811
Finally, check GST rate on paper industry. However, HSN code is used for printing press and will impact on printing industry and also check for rate for printing industry. Check out GST Fireworks and Guns, Rate for Matches.