The Offset Printers Association (OPA), describing the printing and packaging industry in India, has expressed substantial problems about the government’s forthcoming increase in the GST rate on paper and paperboard from 12% to 18%. This change will be effective from September 22, 2025.
The leaders of the OPA cautioned that this move would increase the cost of textbooks and educational materials, which would burden millions of households and jeopardise India’s goal of “Education for All.”
Social Effects on Students and Families for Increasing Costs
Paper is a commodity as well as the soul of education, knowledge, and culture, the OPA General Secretary cited. Almost 70% of India’s 2.5 lakh printing units produce textbooks and learning materials.
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The cost of the textbook with the higher tax may surge by 10 to 15 per cent, which affects more than 200 million students all across the world.
“At a time when families are already struggling with inflation and rising education costs, this GST hike risks widening the gap between privileged and underprivileged children, undermining literacy and social equity,” he expressed.
Inverted Duty Structure
As per the OPA President, the rise in the tax creates an inverted duty structure. The GST council had lessened the tax on cartons, boxes, and cases of paperboard from 12% to 5% but a mismatch of 13% has been formed on the imposition of 18%.
Printing and packaging provide power to sectors like education, FMCG, pharmaceuticals, retail, and exports. In India, packaging comprises 65% of the Rs 80,000 crore paper market. This imbalance could lead to trapped working capital, reduced competitiveness, and the potential closure of 30% of micro and small printing units within a year.
The sector provides support to 2.5 million jobs and contributes over Rs 1.2 lakh crore to GDP.
Reducing Demand for Paper and Tax Compliance
Since 2020, the consumption of paper has been reducing by 5.6% annually. If the GST surge gets implemented, then a further 8% to 10% decline will occur, the industry people projected.
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As there is a nil GST on the exercise books, graph books, and lab notebooks, while the same grade of paper used for textbooks and stationery has attracted an 18% creating classification disputes for 60% of traders.
Strong Appeal By OPA to the Finance Ministry
OPA has recommended Finance Minister Nirmala Sitharaman to again consider the decision and:
- Create a uniform GST rate across all paper products to eradicate disputes.
- Facilitate a GST rate on paper and paperboard to 5%, matching the rate on cartons and boxes.
- By keeping input costs low, ensure that education remains cost-effective.
The association cautioned that the printing and education ecosystem can be harmed by the hike, undermine literacy efforts, and cause widespread business closures if there is no urgent intervention.
