AP’s recycled paper mills make GST waiver plea

In yet another case of GST rate protest, Andhra Pradesh’s recycled paper mills owners have appealed to the Union Finance Minister and the GST council to either waive the GST (12%) or reduce it drastically, as otherwise they will soon have to down the shutters.

10 Jul 2017 | By Sriraam Selvam

According to BV Rama Rao, president of the Federation of Andhra Pradesh Industry (FAPI), ‘out of the 37 recycled paper mills, mostly concentrated in the two Godavari districts, eight had already stopped operations due to several reasons and the rest would also have to follow suit, if the Government does not relent on the GST issue.’

"There are 37 recycled paper mills in the State, with a combined capacity of 6,60,000 tonnes per annum, employing 25,000 persons directly or indirectly, with a turnover of Rs 2,500 crores. Therefore,

the sector has to be saved," said Rao.

“There are roughly 1,000 such units in the country and 15 or so in Telangana. Most of the units were in a similar plight, due to high taxation and high power tariff. Further, it is an eco-friendly industry and it is estimated that 1.4 crore trees are saved annually due to recycling of paper. The Government should save such a sector," he added.

A meeting to discuss the problems of recycled paper units and other micro, small, and medium units in the Godavari districts is to be held on 7 July at Kakinada.