Notebook prices might go up despite 0 GST on paper
Notebooks might get pricier soon, even though the GST on notebook paper drops to zero starting Monday.
The tax cut was supposed to make school supplies cheaper, but the Indian Paper Manufacturers Association (IPMA) says the way taxes are set up could actually push prices up instead.
Why manufacturers are worried
IPMA points out that while notebook paper is now tax-free, wood for making pulp still carries an 18% tax.
This makes it cheaper to import pulp and harder for local manufacturers to compete.
Plus, with zero GST on finished paper, companies can't get back taxes paid on raw materials or equipment—so those extra costs end up in the final price tag.
Imported paper's price edge
Imported paper doesn't face India's IGST, giving foreign suppliers a price advantage over domestic brands.
IPMA warns this could hurt local businesses and farmers who supply wood.
So even with a zero GST move meant to help students, notebooks could end up costing more than before.