The Offset Printers Association (OPA), representing India’s printing and packaging sector, has sounded an alarm over the proposed hike in Goods and Services Tax (GST) on paper and paperboard from 12% to 18%, effective September 22, 2025. According to the association, this increase will directly impact the cost of textbooks and educational materials, creating a burden for millions of families and students.
General Secretary Prof. highlighted the social implications of the move, stressing that paper is not merely a commodity but the “soul of education, knowledge, and culture.” Nearly 70% of India’s 250,000 printing units are engaged in producing textbooks and learning materials. With the hike, text book prices could rise by 10–15%, directly affecting more than 200 million students across the country. “At a time when households are already struggling with rising education costs and inflationary pressures, this GST increase risks undermining the government’s vision of ‘Education for All.’ It could widen the gap between privileged and underprivileged children, and threaten the very foundation of literacy, which is the backbone of national progress and social equity,” he warned.
OPA President echoed this concern, pointing out that while the GST Council recently reduced tax on cartons, boxes, and cases from 12% to 5%, the decision to impose 18% GST on paper creates a crippling inverted duty structure. “Printing and packaging are the silent engines powering education, FMCG, pharmaceuticals, retail, and exports. With packaging alone accounting for nearly 65% of India’s Rs 80,000 crore paper market, the industry is deeply interwoven with every household and every sector of the economy. Imposing 18% GST on paper while keeping finished packaging at 5% creates a 13% inverted duty structure. This imbalance will trap working capital, erode competitiveness, and could push almost 30% of micro and small units—the backbone of this industry—towards closure within just a year. Such a move endangers not only businesses but also the 2.5 million livelihoods and ₹1.2 lakh crore GDP contribution that the sector sustains.”
Paper demand has been declining 5.6% annually since 2020, and a further 8–10% drop is projected if the GST rise is implemented, he said.
He added,” while zero GST applies to paper used for exercise books, graph books, and laboratory notebooks, but 18% is levied on the same grade of paper used for textbooks and stationery. This fuels disputes for 60% of traders.
OPA members this appeal to the union finance minister Nirmala Sitharaman to reduce GST on paper and paperboard to 5%, in line with cartons, boxes and cases of corrugated or non-corrugated paperboard . Ensure a uniform GST rate across all paper products to eliminate classification disputes and lower education costs.
Source from: https://indianexpress.com/article/cities/chandigarh/textbook-prices-gst-hike-paper-education-jobs-10239589/
