The All India Notebook Manufacturers Association (AINMA) has written to Finance Minister Nirmala Sitharaman, seeking urgent intervention over the new goods and services tax (GST) rate structure, which, it says, is hurting the domestic notebook industry.
In a letter written to the minister on October 14, as seen by Business Standard, AINMA said that although paper used for notebooks has been placed under a zero-tax category, suppliers across the country are refusing to sell at that rate. Instead, they are adding extra charges because they cannot claim input tax credit (ITC) when supplying at zero GST. “Suppliers are imposing charges of approximately ₹8,000 to ₹8,500 per metric tonne (which is 12 to 14 per cent) as they cannot avail ITC on inputs and plant & machinery in course of exempted sale,” the letter said.
The association also pointed to confusion over the classification of paper board used for notebook covers. Manufacturers say the current classification is incorrect, which is stopping many mills from supplying material at the new rate. Another major concern is the competitive disadvantage faced by domestic producers. Under the revised GST structure, notebooks imported from Asean countries would attract no customs duty and no integrated GST (IGST).
AINMA said this could lead to cheaper imports and affect local production, while large importers are already preparing to bring in finished notebooks from these markets. It urged the Centre to take corrective steps.
