The All India Federation of Printers and Packagers (AIFPP), representing more than 250,000 businesses across India, has urged the government to place the printing and packaging industry under the 5% GST slab. The call came during a virtual meeting this week to discuss the government’s proposed GST rationalisation plan.

The reform aims to collapse the multi-tier structure into a simplified two-rate system of 5% and 18%, while introducing a 40% rate for “sin goods” such as tobacco. With 96 entrepreneurs attending, the meeting highlighted concerns that shifting printing and packaging products to 18% would inflate costs and hurt competitiveness.

GST expert Advocate N.K. Thaman warned, “The printing and packaging sector is integral to India’s economic landscape. Shifting to an 18% GST rate could stifle innovation, escalate operational costs, and erode our edge in global markets.” He argued that keeping the slab at 5% would encourage job creation, boost exports, and align with the government’s stated goal of simplification.

Mumbai-based printer and Chartered Accountant Uday Dhote echoed the concerns, stressing the vulnerability of small and medium enterprises (MSMEs). “Elevated taxes would inflate production expenses, affect essential packaging items, and pass the burden onto consumers. This could impede the sector’s recovery from the pandemic, especially for MSMEs,” he said.

India’s printing and packaging industry, currently valued at USD 150 billion, directly employs over 2.5 million people. The packaging segment alone, worth USD 101 billion in 2025, is forecast to reach USD 170 billion by 2030 with a CAGR of 10.73%. The commercial printing market, estimated at USD 51 billion, is also thriving on demand from publishing, advertising, and e-commerce.

At present, cartons and corrugated boxes attract 12% GST, stationery items such as registers and diaries 18%, while books remain at concessional rates. Industry stakeholders fear the reform could push many categories into the higher bracket, raising costs by up to 6% and disproportionately hitting MSMEs.

The federation plans to submit a memorandum to the GST Council. Arvind Mardikar, Chairman of Hindustan Samachar, backed the demand, noting that a 5% GST rate would improve affordability, benefit consumers, and strengthen exports, which touched USD 10 billion in 2024 for paper and related products.

Printing And Packaging GST 5 Slab AIFPP GST Demand Printing Industry GST Packaging GST India MSME GST Impact