Hyderabad: The Telangana Paper Merchants’ Association (TPMA) on Tuesday demanded an urgent rollback of Goods and Services Tax (GST) on paper and boards from 18% to 5%. The association emphasized that paper is not a luxury item but an essential commodity that underpins education, sustainability, and daily life.

Addressing the media on Tuesday, TPMA President Abhishek Vijayawargi, Secretary Ashish Jain Bhansali, and Past President T. Kishan Singh, and Federation of Paper Traders Associations of India (FPTA) Vice President Nirmal Kuhad highlighted the disproportionate impact of the current GST rate on students, publishers, packaging industries, and eco-conscious consumers.

“Paper is the foundation of learning and sustainability. Taxing it at 18% is not just economically unjust—it’s socially regressive,” said Mr. Vijayawargi.

The association illustrated the price burden with a simple example: a Rs 70/kg paper becomes Rs 82.60/kg under 18% GST, compared to Rs 73.50/kg under 5% GST—a nearly 12% increase that cascades into higher costs for notebooks, textbooks, packaging, and exam materials.

TPMA also pointed out the inverted duty structure where recycled wastepaper is taxed at 5%, but the finished paper is taxed at 18%, discouraging recycling and creating compliance challenges. With 71% of paper made from recycled material and only 8% from fresh pulp, the industry remains one of the most sustainable sectors in India.

Students preparing for competitive exams consume up to 300 kg of paper per term. The GST hike directly affects 24 crore children and youth, contradicting the government’s goal of inclusive education. The press meet also flagged contradictions in packaging and environmental policy. Paper bags—widely used as eco-friendly alternatives—are taxed at 18%, making them costlier than plastic. Similarly, medicine packaging paper attracts higher GST than the medicines themselves. TPMA urged the government to align India’s tax policy with global norms, where paper for education and sustainability is either zero-rated or taxed minimally.

The association also demanded the correction of anomalies in the GST treatment of notebooks and textbooks. While notebooks are exempt, the paper used to produce them is taxed at 18%, creating confusion, blocking input tax credit, and encouraging misclassification.

“Taxing a child’s textbook at 18% while exempting notebooks is illogical. It penalizes reading while rewarding writing,” said Kuhad.

TPMA called for a unified GST rate of 5% on all paper used for educational and sustainable purposes, eliminating classification disputes and ensuring affordability for students and families. The association concluded by urging policymakers to treat paper as a public good and correct the GST structure to support education, sustainability, and industry growth.