After GST 2.0 (effective 22 September 2025), the rate depends on the paper product. Notebooks, exercise books, printed books, maps, pencils and crayons are Nil (exempt). Newsprint and paper packaging — cartons, boxes and paper bags — are 5%. Most other paper — writing/printing paper, kraft paper, coated paper and tissue/toilet paper — is now 18% (up from the old 12% slab).
GST Rate on Paper — Complete Rate Chart
The GST rate for every common paper and paperboard product under Chapters 48 & 49, with HSN code and post-GST 2.0 rate. See the full HSN code list for classification.
| Paper / Product | HSN | GST Rate | Notes |
|---|---|---|---|
| Notebooks, exercise books, registers | 4820 | Nil | Exempted under GST 2.0 |
| Printed books (textbooks, novels) | 4901 | Nil | Fully printed books stay exempt |
| Newspapers, journals, periodicals | 4902 | Nil | Printed dailies & weeklies |
| Maps, atlases, charts, globes | 4905 | Nil | Education aids |
| Pencils, crayons, sharpeners, erasers | 9609 | Nil | Moved to Nil under GST 2.0 |
| Newsprint (for newspaper printing) | 4801 | 5% | Unchanged |
| Cartons, boxes, cases | 4819 | 5% | Cut from 12% — packaging relief |
| Paper bags & sacks (kraft) | 4819 | 5% | Cement/food/retail bags |
| Writing / printing paper (uncoated) | 4802 | 18% | A4, copier, letterhead |
| Kraft paper & kraft paperboard | 4804 | 18% | Brown packaging paper |
| Coated / glossy printing paper (art) | 4810 | 18% | Magazine paper |
| Tissue, toilet paper, napkins | 4803/4818 | 18% | Household / sanitary paper |
| Paper cups & plates | 4823 | 18% | Disposable foodservice |
| Paper labels, self-adhesive | 4821 | 18% | Product labelling |
| Envelopes, letter pads | 4817 | 18% | Mailing stationery |
| Pens, ball-point pens | 9608 | 18% | Writing instruments |
| E-books / digital publications | Service | 18% | Taxed as electronic service |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (Notifications 09/2025 & 10/2025-CT(Rate)). Uncoated paper (4802) meant specifically for notebooks/exercise books is Nil; general grades are 18%. Confirm on the official GST portal before invoicing.
Before 22 September 2025, most paper under Chapter 48 sat at 12%. GST 2.0 split it: notebooks/exercise books and printed books became Nil, packaging (cartons, boxes, paper bags) dropped to 5%, while general writing, kraft, coated and tissue paper rose to 18%. Check every product line — some prices went up, some down.
Notebooks Are Nil, but the Paper May Be 18%
The single biggest source of confusion post-GST 2.0: the finished notebook or exercise book (HSN 4820) is Nil, but the uncoated paper reel (HSN 4802) a manufacturer buys can be 18% — unless it is supplied specifically for making exercise/graph/laboratory notebooks, in which case it too is Nil. Classification hinges on the end-use of the paper.
Exempt paper products
- Notebooks, exercise & graph books (4820)
- Printed books, textbooks (4901)
- Newspapers, maps, atlases (4902/4905)
- Pencils, crayons, sharpeners, erasers
- Paper supplied for exercise-book making
Standard-rate paper
- Uncoated writing / printing paper (4802)
- Kraft & coated paper (4804/4810)
- Tissue, toilet paper, napkins (4803/4818)
- Paper cups & plates (4823)
- Pens, envelopes, labels
Because the exemption on uncoated paper is tied to its ultimate use (making notebooks), a paper mill selling the same reel may charge Nil to a notebook maker but 18% to a general buyer. Keep end-use declarations and correct HSN on every invoice to defend the rate in an audit.
Manufacturing notebooks or trading paper? Get your HSN classification checked.
Get My GST Rate →GST on Paper Bags, Cartons & Packaging
Paper packaging got a clear cut. Cartons, boxes, cases and paper/kraft bags (HSN 4819) are now 5%, down from 12% — welcome relief for e-commerce, FMCG and retail. Registered buyers get full Input Tax Credit on this packaging when used for taxable supplies.
How GST Adds Up — Two Products
5% Carton / paper-bag order
18% Writing-paper order
A registered business recovers this GST as ITC, so the tax is a cash-flow item, not a cost. For an unregistered buyer below the registration threshold, the GST is a real added cost.
Run a packaging or printing business? Let us handle your GST filings.
Get GST Advice →ITC for Publishers, Printers & Paper Traders
The catch for the paper trade is that a Nil (exempt) output blocks ITC on inputs under Section 17(2). A publisher of exempt books cannot claim the GST paid on paper and ink; a printer providing taxable printing services can.
| Business | Input (Paper) | Output | ITC? |
|---|---|---|---|
| Book publisher (only books) | Paper, printing | Printed books — Nil | No · Sec 17(2) |
| Magazine / brochure publisher | Paper, printing | Taxable print — 5% | Yes |
| Mixed publisher (books + magazines) | Paper | Mix of Nil + taxable | Proportionate · Rule 42 |
| Job printer (printing services) | Paper, ink, machinery | Printing service — 18% | Yes |
| Paper-bag / carton maker | Kraft paper @ 18% | Bags / cartons — 5% | Yes |
| Stationery retailer | Paper, pens | Retail sale — Nil/18% | Yes (taxable lines) |
A carton maker buying 18% paper and selling 5% cartons builds up an inverted-duty credit — a refund may be claimable under Section 54(3).
The 18%-in / 5%-out gap for paper-bag and carton makers creates an inverted duty structure. The accumulated ITC does not just sit idle — you can apply for a refund of the unutilised credit. Many small packaging units miss this and quietly absorb the cost.
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