Indian publishers, booksellers call for urgent GST relief

While books themselves are exempt from GST, printing services are taxed at up to 18% and paper at 12%. This discrepancy significantly increases production costs for publishers, particularly small-to-medium and Indian language presses, with these costs ultimately passed on to consumers, making books less affordable.

A joint appeal from the industry says, books are the cornerstone of education, knowledge dissemination, and cultural development. It adds, “Taxing printing like a 'luxury service' contradicts the Constitutional push for education and access to knowledge.”

The appeal highlights that India's GST rates on book printing are punitive compared to many countries, including the UK and most of the EU, where books and printing services are zero-rated or have very low VAT/GST. This policy contradiction is seen as undermining government initiatives like Padhe Bharat Badhe Bharat (Read India, Grow India) by making the very materials that fuel reading more expensive.

The rising costs disproportionately affect students, teachers, and lower-income readers. The industry also points out a peculiar situation where books printed for export are zero-rated under GST, while those for domestic consumption face an 18% tax. Similarly, imported books face a 5% customs duty, but locally produced books incur higher GST on paper and printing, increasing domestic production costs.

Beyond printing, the appeal calls for the removal of GST on author royalties, citing it as an unfair double taxation on creative income already subject to income tax. They also advocate for eliminating GST on eBooks and audiobooks, aligning with the "digital push" of the National Education Policy (NEP) and National Curriculum Framework (NCF).

Adding to the woes of the industry is the recent withdrawal of concessional postal rates for books. The merger of Registered Post into the more expensive Speed Post and the narrow interpretation of the new Gyan Post scheme, which largely excludes general and cultural publications, have sharply increased distribution costs.

The publishers and booksellers recommend:

• Introducing a low, reasonable GST slab (5% or entirely exempt) for printing books, educational materials, and newspapers, while retaining a higher rate for luxury/packaging printing.
• Clearly differentiating educational and cultural printing from commercial printing to prevent misuse.
• Eliminating GST on author royalties.
• Removing GST on eBooks and audiobooks.
• Reinstating concessional postal rates for book distribution.

If India aims to become a global leader in education, innovation and economic growth, it must recognise books as a public good and ensure their affordability through a fair, enlightened tax policy," the joint appeal concludes.