New Delhi, Aug. 4 -- The Rs 40,000-crore corrugated packaging industry, dominated by MSMEs, has raised concerns over the GST structure effective from September 2025, under which the tax on kraft paper was increased to 18 percent while the levy on finished corrugated boxes was reduced to 5 percent .

Corrugated Packaging Industry Flags GST Imbalance

Industry representatives said the inverted tax structure has led to a buildup of unutilised input tax credit, locking up manufacturers' working capital.

The sector has over 15,000 MSME units supplying packaging for food, agriculture, pharmaceuticals, electronics, textiles, engineering goods and e-commerce.

MSMEs Seek GST Neutrality For Corrugated Packaging

ICCMA President Rishabh Agarwal sa...