GST rationalisation insights by Uday Dhote

Uday Dhote presented a concise understanding of the expected rationalisation of GST slabs and rates and their likely impact on the print and packaging industry. 

Key takeaways from his presentation regarding the GST rate changes effective 22 September 2025, for printing and packaging activities include:

Printed Products (HSN):

• Boxes, pouches, wallets, and writing compendiums of paper or paperboard containing an assortment of paper stationery will see their HSN rate decrease from 12% to 5%.
• Corrugated paper or paperboard: Cartons, cases & boxes, and non-corrugated paper or paperboard: cartons, cases & boxes will also decrease from 12% to 5%.
• Paper sacks/bags and biodegradable bags will see their rate reduced from 18% to 5%.
• Exercise books, notebooks, graph books & laboratory notebooks under HSN Chapter 48 will become Nil from 12%.

Printing Contracts/Services (SAC 9989):

• Books & booklets (including Braille books, workbooks, text books, technical publications, dictionaries, encyclopaedias, directories, prayer & hymn books, children’s books), informative brochures, leaflets, pamphlets (excluding those devoted to publicity) & annual reports, newspapers, journals & periodicals, children's picture, drawing or colouring books, and music books will remain at 18% when physical inputs (including paper) belong to the printer.

Job Work (SAC 9988):

• The job work rate for products like boxes, pouches, wallets, and writing compendiums, corrugated paper or paperboard: cartons, cases & boxes, non-corrugated paper or paperboard: cartons, cases & boxes, and paper sacks/bags and biodegradable bags will be 5% when the client is a registered dealer. If the client is unregistered, an 18% rate will apply regardless of the HSN.
• For books & booklets, informative brochures, newspapers, journals & periodicals, children's picture, drawing or colouring books, and music books, the job work rate will be 5% for registered dealers.

Dhote highlighted that in packaging, there is a clear inverted duty structure, which will lead to refunds. He also noted that for commercial printers, working capital will be blocked to the extent of excess GST on paper until payments are received from clients.

New developments also include the operationalisation of the GST Appellate Tribunal (GSTAT) for appeals before the end of September 2025, with hearings commencing before the end of December 2025, providing a robust mechanism for dispute resolution. Additionally, the threshold limit for refunds from exports with tax payment has been removed, benefiting small exporters.