Lokmat News Network
Chhatrapati Sambhajinagar: The recent changes in the GST system by the central government may put box manufacturers under financial strain. While GST on corrugated box production has been set at 5%, the main raw material required for production of kraft paper faces a steep 18% GST. This discrepancy is expected to hit the industry hard. The Western India Corrugated Box Manufacturers Association, in a two-day state-level council, demanded that this GST gap be addressed immediately and that the same rate should apply to both production and raw materials.
The state-level council, held at a hotel opposite Chikalthana Airport, began on Friday and concluded on Saturday. The inauguration was marked by a lamp-lighting ceremony by Minister Atul Sawe and Lokmat Editor-in-Chief Rajendra Darda. Other dignitaries present included Shlok Kedia, Satyajit Patel, Kirti Gandhi, State President Anil Loya, Pankaj Shah, and Rohit Bubna.
The GST council had announced the new tax system on September 3. According to the changes, the GST rate on box production was reduced from 12% to 5%, which is a positive move. However, the GST on raw material was increased from 12% to 18%. Earlier, the input and output tax rates were the same at 12%. Industry representatives expressed that the current discrepancy could prove harmful to manufacturers.
Photo Caption:
During the inauguration of the state-level council of the Corrugated Box Manufacturers Association, State OBC Welfare Minister Atul Sawe and Lokmat Editor-in-Chief Rajendra Darda performed the lamp-lighting ceremony. Also present were Shlok Kedia, Satyajit Patel, Kirti Gandhi, State President Anil Loya, Pankaj Shah, Rohit Bubna, and other dignitaries.