Himachal's corrugated box makers rue GST hike

By 09 Oct 2021

The Himachal Pradesh Corrugated Box Manufacturers have opposed the move of the GST council to increase the rate from 12 to 18% on corrugated boxes made of corrugated, paper and board.

The 45th meeting of the GST council has proposed to increase the GST on corrugated boxes from 12 to 18% on cartons, boxes, packing containers of paper, etc. The council while clarifying this increase has stated that this was done to remove ambiguity and a uniform rate of 18% has been proposed on all paper and paper board container, whether corrugated or non-corrugated.

According to the manufacturers, an increase of 6% in the GST rate of corrugated boxes will have a debilitating effect on the business. They added that GST on corrugated boxes has been 12% since its inception and it was on par with its major raw material — kraft paper and paperboard.

Now, the manufacturers want the state government to take up the matter with the GST council in its next meeting. A representation regarding this was also given to the union finance minister at Panchkula.

The manufacturers contended that they are MSME with a large number of them being micro and small sector enterprises. This increase will hit cash flow in the market. Earlier, 3% cash flow of sales was required but the new development will push it to 9% and no customer will offset this additional cost of finance.

(Courtesy Agencies)

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