Lokmat News Network
Chhatrapati Sambhajinagar
Recent changes in the GST system announced by the Central Government may create a financial crisis for box manufacturers. While corrugated box production is taxed at 5% GST, its main raw material kraft paper is taxed at 18%, leaving the industry facing a major setback. The Western India Corrugated Box Manufacturers’ Association, in its two-day state-level conference, demanded that this disparity be removed and that GST on both finished products and raw materials be made uniform.
The conference, held at a hotel near Chikalthana Airport, concluded on Saturday. It was inaugurated on Friday by minister Atul Save and Lokmat Editor-in-Chief Rajendra Darda through the traditional lighting of the lamp. Association representatives president Anil Loya, Shlok Kedia, Satyajit Patel, Kirti Gandhi, president Anil Loya, Pankaj Shah, Rohit Bubna, and other dignitaries were present. On September 3, the GST Council announced the revised tax system, reducing the GST on box production from 12% to 5% a positive step. However, the GST on kraft paper was increased from 12% to 18%, reversing the earlier uniform rate of 12% for both input and output. Delegates at the conference warned that this disparity would be harmful to the industry. They urged Minister Save to reduce GST on kraft paper and corrugated boards to 5%, equal to that of box production.
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An eco-friendly alternative to plastic
Highlighting the importance of paper boxes as a substitute for plastic, the Association pledged to promote eco-friendly initiatives. Paper-based boxes are recyclable and repulpable, making them valuable for environmental protection. Association member Dushyant Patil informed that production of eco-friendly boxes will be increased to meet consumer demand.