Updated on July 09, 2025 05:24:46 PM
The paper and paperboard business is a key industry in the fields of packaging, education, printing, and general office usage. With the introduction of Goods and Services Tax (GST) in India, companies involved with paper products should know the applicable GST rates and respective HSN (Harmonized System of Nomenclature) codes to ensure proper compliance and invoicing.
HSN codes are required on GST since they assist in categorizing goods systematically and identifying the appropriate tax rate. In the case of paper and paperboard products, HSN codes mostly belong to Chapter 48 of the HSN code list. These range from plain paper, coated paper, kraft paper, and paperboard to cartons, boxes, envelopes, notebooks, and others. Each product gets a different HSN code with a matching GST rate, which is typically between 5% and 18%.
The GST rates differ based on the type, use, and processing level of the paper product. For instance, plain uncoated paper has a lower GST rate, while laminated or coated paperboard for packaging may be under a higher slab. Knowledge of the right HSN codes and GST rates is essential for manufacturers, suppliers, traders, and printers to maintain tax compliance and steer clear of penalties. It also aids in simplifying trade, enhancing transparency, and eliminating classification disputes while being audited.
HSN refers to the Harmonized System of Nomenclature, which is an international coding scheme under the auspices of the World Customs Organization (WCO) for the classification of goods in a uniform and systematic manner. In the framework of India's Goods and Services Tax (GST) system, HSN codes assist in defining the type of goods as well as fixing the proper rate of GST leviable on the same.
Every HSN code is a specific number ranging from 4 to 8 digits that defines a product or products. The first two digits identify the chapter of the product, then the next two identify the heading, and the remaining digits (if any) indicate further detail about the item. For instance, paper and paperboard products are classified under Chapter 48 of the HSN.
Applying HSN codes guarantees consistency in classification in India and even globally. It also minimizes the possibility of tax filing errors and automates GST returns and invoice preparation. Companies are required to apply the correct HSN code on their tax invoices, e-way bills, and GST returns.
Paper products come under Chapter 48 of the HSN code list and are charged varying GST slabs depending on the type, application, and degree of processing. A summary of the prevalent GST rates applicable to different paper and paperboard products is as follows:
| Product Type | HSN Code | GST Rate |
|---|---|---|
| Uncoated paper for printing or writing | 4802 | 12% |
| Newsprint in rolls or sheets | 4801 | 5% |
| Exercise books, notebooks | 4820 | 12% |
| Paperboard and cards for packaging | 4819 | 18% |
| Envelopes, letter cards, plain paper items | 4817 | 12% |
| Toilet paper, tissues, napkins | 4818 | 12% |
| Corrugated paper boxes and cartons | 4819 | 18% |
| Coated, laminated, or glazed paper | 4810 | 18% |
For proper GST classification and compliance, companies handling paper products need to refer to the right HSN codes. Here is a list of frequently used paper and paperboard products along with their HSN codes and corresponding GST rates:
| Product Description | HSN Code | GST Rate |
|---|---|---|
| Newsprint, in rolls or sheets | 4801 | 5% |
| Uncoated paper for printing/writing | 4802 | 12% |
| Toilet paper, tissues, napkins | 4818 | 12% |
| Kraft paper & paperboard (uncoated) | 4804 | 12% |
| Coated/glazed/laminated paper and paperboard | 4810 | 18% |
| Boxes, cartons, and cases of corrugated paper/board | 4819 | 18% |
| Paper envelopes, letter cards | 4817 | 12% |
| Exercise books, registers, and diaries | 4820 | 12% |
| Paper labels (printed or unprinted) | 4821 | 12% |
| Paper trays, plates, cups, and similar paper articles | 4823 | 12% |
GST has had a drastic impact on the paper and paperboard sector, both positively and negatively. Below are the highlights of the most important impacts:
Conclusion
HSN codes and the GST regime, the paper and paperboard industry has become more transparent, standardized, and efficient. Product categorization under specific codes of HSN and uniform application of GST rates ensure improved tax compliance and smooth operations by companies. While certain paper items attract higher rates of tax, the advantage of input tax credit minimizes the overall tax burden.
Moreover, the transition has promoted equitable competition by pulling unorganized players into the formal sector. By and large, GST has given the paper industry a structured, responsive, and growth-conducive tax framework.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions (FAQs)
An HSN (Harmonized System of Nomenclature) code is a standardized code used to classify goods under GST for tax purposes. It identifies products and their applicable tax rates.
GST for paper products is based on their classification. For example, newsprint has 5% GST while coated paper may have an 18% rate.
Paper packaging materials like cartons and corrugated boxes are typically taxed at 18% GST depending on their classification.
Some paper products like newsprint are exempt or taxed at 5%, but most paper and paperboard items attract 12% or 18% GST.
HSN codes help in proper classification, correct tax application, compliance, and easier exports for paper product businesses.
Yes, paper industry businesses can claim ITC on inputs used in production and operations, reducing their tax liability.
Incorrect HSN code usage can lead to wrong GST rates, penalties, and compliance issues. Accurate classification is essential.
Yes, GST rates vary by paper product type—uncoated paper may attract 12%, while items like coated board or boxes may be taxed at 18%.
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