Exempt ‘home-made’ papers from GST, Center said | Erode News

Erode: The district’s paper bag makers have urged the Union government to exempt “homemade” papers from the GST because they use them as a raw material.
Speaking to TOI, Secretary of the Tamil Nadu Paper Bag Manufacturers Association (TNPBMA) SK Ramasamy said that the paper bag manufacturing industry falls under the category of small and medium industries. . Over 200 industries operate in Pollachi, Coimbatore, Tiruppur, Udumalpet, Chennimalai, Namakkal, Trichy, Madurai and Chennai. “Over 20,000 workers depend on this industry and 5,000 traders are involved in retailing across the state,” he said.
Ramasamy said they used “craft” paper as the raw material for the bags. It was sold at Rs 35 per kilo in 2017, Rs 40 in 2020 while the GST was 12%. “After revising the GST to 18%, now the same paper is sold at Rs 55 per kilo,” he said. The cost of production would increase if the price of kraft paper increased, he added.
Ramasamy said the 36X54cm (100 nos) size blanket was sold for Rs 200 when the GST was 12%. “The same blanket is now being sold for Rs 270 after the GST increased to 18%,” he said. “Our customers are refusing coverage at the new rate even after we have explained the GST hike to them,” he added.
The association asked Finance Minister Nirmala Seetharaman on Tuesday for a GST exemption. “We also sent a petition to the Chief Minister, Deputy Stalin, to submit this issue to the Union government,” he said. tnn

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