<h1>Paper and notebook makers ask government to restore input tax neutrality after GST rate cut creates inverted duty structure</h1> Industry associations representing exercise book and notebook manufacturers have petitioned the government to revisit recent GST rate rationalisation, arguing it creates an inverted duty structure that disallows input tax credit or refunds and thereby raises production costs. The GST Council reduced rates effective Sept 22, making notebooks and paper for notebooks nil-rated while upstream inputs and capital goods remain taxed at higher rates, which manufacturers say nullifies intended consumer benefits and harms domestic pulp producers due to lower import duties. The associations seek either a uniform 5% rate on paper products or an alternative refund mechanism to restore input tax neutrality.