OPA Applauds GST Council’s Decision to Reduce GST on Carton Boxes
25 June 2024: The Offset Printers Association (OPA) has expressed its appreciation for the GST Council’s recommendation to reduce GST on Carton Boxes from 18% to 12%. This decision, which applies to carton boxes and cases made from both corrugated and non-corrugated paper or paperboard, is seen as a significant boost for the print-packaging sector.
The reduction in GST is expected to lower operational costs for the paper-based packaging industry, enabling businesses to offer more competitive prices to their clients. OPA has thanked the GST Council for addressing their long-standing demand for a reduction in the tax rate.
Prof. Kamal Mohan Chopra, former President of the World Print & Communication Forum (WPCF), praised the decision, stating, “We appreciate GST Council’s decision to reduce the GST on carton boxes. It aligns with our goal of reducing the environmental footprint of packaging materials. The cost savings can be redirected towards research and development of more eco-friendly packaging options.”
OPA President Parveen Aggarwal also welcomed the move but highlighted additional concerns. “While the GST reduction is helpful, we also demand a similar step for printing. The real issue lies in complexities ofGST filing process. Simplifying GST compliance process would have a more significant impact on small businesses like ours, reducing administrative burdens and allowing us to focus more on growth and innovation,” he said.
Kushl Kumar Jain, Senior Vice President of OPA, noted the financial benefits of the change. “This reduction will help improve our cash flow, as we will have to pay less GST upfront. However, we must ensure that our pricing reflects the change accurately to maintain profitability.”
Gagandeep Singh, Vice President of OPA, emphasized the positive impact on smaller enterprises. “This reduction is a relief for small and medium-sized enterprises like ours. It will help us to invest more in sustainable packaging solutions and expand our business. Lowering the GST rate makes packaging more affordable for our customers, leading to higher demand for our products,” he said.
The OPA remains hopeful that GST Council will continue to address their concerns and implement measures that further support the print-packaging sector.
