GST on Paper Products: Printing, Writing, and Packaging
Paper is used in education, offices, packaging, printing, and even hygiene products. But under the Goods and Services Tax (GST) system, not all paper items are taxed equally. In this guide, we explain how gst on paper varies based on the type and use of paper.
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GST Rate on Paper Products
The paper gst rate depends on what kind of paper you’re buying and how it’s used. Here’s a quick breakdown:
| Type of Paper Product | HSN Code | GST Rate |
|---|---|---|
| A4 paper, copier paper | 4802 | 12% |
| Books and exercise notebooks | 4901/4820 | Exempt (0%) |
| Newspapers and periodicals | 4902 | Exempt (0%) |
| Printed materials (non-advertising) | 4901 | 5% |
| Tissue paper, napkins, and towels | 4818 | 18% |
| Paper cartons and boxes | 4819 | 18% |
| Paper used for packaging (kraft, corrugated) | 4804 / 4805 | 12% |
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GST on Newspaper and Books
- gst on newspaper: 0% (Exempt)
- Books, including school textbooks and novels: 0% (Exempt)
- Magazines and journals (non-advertising): 0%
GST on Tissue Paper and Paper Napkins
- Tissue paper roll: 18%
- Paper napkins: 18%
- Kitchen and toilet paper towels: 18%
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Input Tax Credit for Paper Manufacturers and Sellers
- You can claim Input Tax Credit on raw materials, inks, and production-related services.
- Maintain GST-compliant invoices with proper HSN codes.
- File monthly or quarterly returns based on your turnover.
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Common Use Cases and Their GST Impact
| Use Case | GST Treatment |
|---|---|
| Buying notebooks for students | GST-exempt |
| Buying A4 reams for office use | 12% GST |
| Selling paper bags for packaging | 12% GST |
| Supplying tissue rolls to hotels | 18% GST |
| Printing wedding cards or brochures | 5% or 18% based on service |
Staying updated with applicable rates helps ensure GST-compliance and proper invoicing.
Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!
Frequently Asked Questions (FAQs)
- What types of software solutions are commonly used in the paper mill industry?In the paper mill industry, software solutions for inventory management, production planning, quality control, and accounting are essential. BUSY software provides robust accounting, inventory, and financial tracking tools tailored for managing raw materials, production costs, and overall business performance efficiently.
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- Is it possible to integrate software solutions with existing machinery and systems?Yes, many software solutions integrate with existing systems to exchange data seamlessly. BUSY supports data imports and integration with accounting and ERP systems, enabling paper mills to synchronize inventory and financial data with their current operations.
- What are the benefits of using BUSY software for a paper mill?BUSY offers accounting, inventory, and vendor management in one system, reducing manual work and improving accuracy. For paper mills, BUSY tracks production costs, raw material usage, and finances, providing a complete view for better decision-making and efficiency.
