₹ 2 lakh – ₹ 80 lakh
Check your pre-approved business loan
Enter mobile and OTP | Check offer | Know your exact loan terms
GST rate and HSN code for papers
-
Understanding the correct HSN code is essential for determining the applicable GST rate. Paper and paperboard products are classified under Chapter 48 of the HSN system.
- HSN codes for paper products typically fall between 4801 to 4823.
- Items such as newsprint, uncoated paper, coated paper, and paperboard have specific codes.
Different GST rates apply based on product classification under HSN codes.
Paper products not taxable under GST
Certain paper-related items are fully exempt from GST. These are usually regulatory or legal documents not treated as commercial goods.
- Judicial and non-judicial stamp papers.
- Court fee stamps when sold by the government.
- Indian currency notes and postal items like envelopes and postcards issued by the government.
These exemptions reflect their non-commercial utility and administrative nature.
Paper products taxable at 5% GST rate
-
Only a limited category of paper products is taxed at 5% GST:
- Newsprint in rolls or sheets qualifies for the 5% GST rate.
This lower tax bracket aims to support the print and publishing industry.
Paper products taxable at 12% GST rate
Some commonly used paper types attract a 12% GST rate:
- Uncoated paper and paperboard for writing, printing, or similar purposes.
- Paper used for producing books, printing paper, or exercise books.
- Filter paper and specific industrial-grade papers.
Check your business loan eligibility to manage working capital requirements when dealing with taxed raw materials or bulk orders.
Paper products taxable at 18% GST rate
The 18% GST rate is applicable to more processed or value-added paper products.
Key pointers:
- Coated paper and paperboard (including kraft paper).
- Carbon paper, tissue paper, self-copy paper.
- Cartons, boxes, packaging materials.
- Pulp moulded trays and asphaltic roofing sheets.
This category includes most packaging and industrial paper applications.
How is GST applicable to paper?
GST applicability on paper depends on the product's nature, classification, and use. Businesses dealing in paper products must ensure compliance based on HSN classification.
Key pointers:
- Proper HSN classification is mandatory for accurate GST application.
- Manufacturers, distributors, and retailers need to charge the appropriate GST rate at each supply stage.
- Businesses can claim Input Tax Credit (ITC) on GST paid during purchases.
Check your pre-approved business loan offer
How is GST calculated on paper?
Calculating GST on paper involves applying the correct percentage based on classification.
Steps to calculate GST:
- Identify the product and its correct HSN code.
- Apply the applicable GST rate (5%, 12%, or 18%).
- Multiply the product cost by the GST rate to compute the tax amount.
Example:
If coated paperboard costs Rs. 5,000 and falls under the 18% bracket:
GST = Rs. 5,000 × 18% = Rs. 900
Total price = Rs. 5,000 + Rs. 900 = Rs. 5,900
Use this GST calculator for quick and accurate GST computation.
Conclusion
-
A clear understanding of the applicable GST rate and HSN code for paper helps ensure smooth operations and regulatory compliance in the paper industry. Whether you are a manufacturer, wholesaler, or retailer, proper tax classification supports accurate billing and eligibility for tax credits.
If you're planning to scale your operations or invest in inventory, a business loan can help fund your growth while staying GST-compliant.
Get business loan for your needs
Women Business Loan
Get Women Business Loan upto 80 Lakh
Medical Store Business Loan
Get Medical Store Business Loan upto 80 Lakh
Manufacturer Business Loan
Get Manufacturer Business Loan upto 80 Lakh
Our loan variants
Loans for business needs
Select loan by amount
Business loan in different cities
Business loan in bangalore
Business loan in mumbai
Business loan in pune
Business loan in Jaipur
Business loan in Kerala
Business Loan in Telangana
Business Loan in Surat
Business Loan in Ranchi
Business Loan in Odisha
Business Loan in Noida
Business Loan in Kolkata
Business Loan in Karnataka
Business Loan in Hyderabad
Business Loan in Gujarat
Business Loan in Coimbatore
Business Loan in Assam
Business Loan in Ahmedabad
Business loan for different budgets
2 lakh business loan
3 lakh business loan
5 lakh business loan
10 lakh business loan
15 lakh business loan
20 lakh business loan
25 lakh business loan
30 lakh business loan
50 lakh business loan
Types of business loan
Unsecured Business Loan
Secured Business Loan
Term Loan
Cash Credit
Working Capital Loan
Machinery Loan
Line of Credit
Micro Loan
Merchant cash Loan
Frequently Asked Questions
Overview
What is the HSN code for paper 18% GST?
Paper products attracting 18% GST can fall under different HSN headings depending on their type. For example, certain products under HSN 4820 and 4823 attract 18% GST.
Is paper exempt from GST?
Not all paper is exempt. GST rates vary by paper type and classification; some specified paper products are Nil-rated, while others attract 5%, 12% or 18% GST. Therefore, the exact HSN classification should be checked before determining the applicable rate.
Is there any GST on newspapers?
No, newspapers classified under the applicable GST heading are generally Nil-rated. However, the GST treatment can vary for related products and services, so the correct classification should be confirmed before determining the applicable rate.
Which types of papers require GST?
GST applies to several paper and paperboard products, depending on their HSN classification. While some specified paper products are Nil-rated, others may attract 5%, 12% or 18% GST. The applicable rate depends on the product's type, use and classification, so businesses should verify the relevant HSN code before charging GST.
More articles
Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.