Kolkata, Jul 1 (PTI) The Bharat Chamber of Commerce (BCC) has urged West Bengal Chief Minister Suvendu Adhikari to press for a reduction in the Goods and Services Tax on paper and paperboard used in manufacturing corrugated cartons, boxes and cases, from 18 per cent to 5 per cent.

In a letter dated June 30, BCC president Naresh Pachisia said the 57th GST Council meeting, scheduled to be held in Kolkata in the second half of July, presented an opportunity to take up the issue.

Pachisia noted that principal raw materials for paper manufacturing, including wood pulp, attracts 5 per cent GST leading to inverted duty structure for the sector – final product attracting 18 per cent GST while input raw material 5 per cent – and said bringing down the rate on paper and paperboard would help eliminate the inverted duty structure.

He said the packaging industry occupied a vital position in the country's manufacturing ecosystem, supporting storage, preservation, logistics and transportation across sectors such as agriculture, food processing, pharmaceuticals, FMCG, engineering and e-commerce.

The chamber said the move would strengthen the competitiveness of India's packaging sector, improve liquidity for MSMEs, reduce embedded tax costs, and support employment generation and exports. PTI BSM RBT

GST rationalisation for paperboard packaging sought to ease inverted duty structure and support MSMEs. A trade chamber has sought GST rationalisation for paper and paperboard used in manufacturing corrugated cartons, boxes and cases, proposing a reduction from 18 per cent to 5 per cent. The request is based on the inverted duty structure created when raw materials attract 5 per cent GST while the finished product attracts 18 per cent GST, leading to embedded tax costs. The chamber says the measure would support competitiveness, MSME liquidity, employment generation and exports.