Kolkata: Federation of Corrugated Box Manufacturers of India (FCBM) and Eastern India Corrugated Box Manufacturers’ Association (EICMA), along with Bharat Chamber of Commerce, have submitted representations to Union finance minister and chairperson of GST Council Nirmala Sitharaman, seeking rationalisation of GST applicable to paper and paperboard used in the manufacture of corrugated cartons, boxes and cases, from 18% to 5%.The representation pointed out that prior to the 56th GST Council meeting, corrugated boxes and material used for their production attracted a uniform GST rate of 12%. However, following recent reforms, GST rate on corrugated boxes was reduced to 5%, while the rate on paper and paperboard was increased to 18%, creating a disparity in tax rates levied on input and output.“This disparity has created issues for this sector, including an inverted duty structure and increased tax cost,” the industry bodies added.This comes with the GST Council meet set to be held in Kolkata this time.
