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IPMA Concerns Over New GST Rate on Bags, Cartons, Boxes, Packaging Material

IPMA Opposes 18 Percent GST Rate on Packaging Materials

Indian Paper Manufacturers Association (IPMA) has shown concern over the hike in GST rates on paper bags, cartons boxes, and the rest of packaging material which as per the association will enhance for consumers to get away from a particular – use of plastic. On September 17, 2021, The GST Council held its 45th meeting where they proposed an increase in the GST charge on cartoon boxes, bags packing containers of paper, etc. from 12% to18 %.

As per the report of IPMA, the suggestion of the GST council is surprising and not in sync with the move of the government regarding the ban of the use of single-use plastic.

Admitting the global imperil of individual use plastic which is not biodegradable, India had recently conveyed an international pledge to restrict all single-use plastic that is non – biodegradable by 2022. Earlier, toward this mission, the government adopt the Plastic Waste Management Rules hindering the manufacture, sale along with particular use of the plastic product from July 1, 2022; however, there will be also a ban on plastic carry bags which containing thickness, not more than 75 microns which strictly followed by September 30, 2021, and 120 microns from December 31, 2022.

IPMA President, AS Mehta, told that the paper is one of the most naturally sustainable products which easily get fully biodegraded, recyclable, and is obtained from sources that are renewable and sustainable. Paper supply is a feasible alternative to single-use plastic in multiple applications. An enhancement in the GST charge on paper cartons boxes and bags will work apart from the government’s effects towards gradually out the use of single-use plastic, he added.

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