GST Disparity Threatens Survival of India's Corrugated Box Industry

Corrugated box manufacturers in India are facing a crisis due to an inverted GST duty structure. The GST on corrugated boxes is reduced to 5%, but the tax on raw materials has increased to 18%. This change burdens over 20,000 MSMEs, threatening their viability and impacting one million jobs.

In a stark revelation, corrugated box manufacturers in India have raised concerns over a severe GST duty disparity that could push over 20,000 MSMEs to the brink of closure. The recent GST revisions have reduced the tax on corrugated boxes to 5%, yet increased it on essential raw materials to 18%.

The Eastern India Corrugated Box Manufacturers association highlighted this imbalance, emphasizing that it burdens the industry with a 13% discrepancy, jeopardizing the viability of these small enterprises. The sector, employing over one million individuals, converts nearly seven million tonnes of kraft paper into packaging annually.

The association warns that this change could lead to working capital blockages, higher costs, and ultimately burden consumers with price hikes. They are urging the government to restore GST parity to support the 'Made in India' and 'Vocal for Local' initiatives, ensuring the sustainability of this crucial MSME sector.

(With inputs from agencies.)