As per CBIC's recent GST revisions extend beyond healthcare and education, bringing relief to the Consumer Electronics and Paper sectors. These changes aim to reduce costs, encourage consumption, and support industries that are vital to modern lifestyles, education, and businesses. With rates being lowered from 28% to 18%, 12% to Nil, and 12% to 5%, the benefits are expected to ripple across manufacturing units, retail outlets, and consumers alike.
Consumer Electronics
( 28% to 18%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item |
Description of Goods | ||||||||||||||||||||||||||||||||||||||||||||||||
| 1. | 8415 | Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated |
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| 2. | 8422 | Dish washing machines, household [8422 11 00] and other [8422 19 00] |
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| 3. | 8528 | Television sets (including LCD and LED television); Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus, set top box for television and Television set (including LCD and LED television). |
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Impact on consumer electronics:
With the reduction in GST, consumers are likely to see better affordability and increased demand for electronics that enhance comfort, entertainment, and productivity. Businesses can also expand product lines, invest in customer service, and offer better financing options.
Paper Sector
12% to Nil
| S. No. | Chapter / Heading / Sub-heading / Tariff item |
Description of Goods | ||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | 4802 | Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks |
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(12% to 5%)
| S. No. | Chapter / Heading / Sub- heading / Tariff item | Description of Goods | ||||||||||||||||||||||||||||||||||||||||||||||||
| 1. | 4701 | Mechanical wood pulp | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2. | 4703 | Chemical wood pulp, soda or sulphate, other than dissolving grades |
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| 3. | 4704 | Chemical wood pulp, sulphite, other than dissolving grades | ||||||||||||||||||||||||||||||||||||||||||||||||
| 4. | 4705 | Wood pulp obtained by a combination of mechanical and chemical pulping processes |
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| 5. | 4706 | Pulps of fibres derived from recovered (waste and scrap) paper or paperboard or of other fibrous cellulosic material |
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| 6. | 4817 30 | Boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery |
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| 7. | 4819 10, 4819 20 | Cartons, boxes and cases of,- (a) Corrugated paper or paper boards; or (b) Non-corrugated paper or paper board |
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| 8. | 4823 | Paper pulp moulded trays | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9. | 48 | Paper splints for matches, whether or not waxed, Asphaltic roofing sheets |
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| 10. | 48 | Paper Sack and Bio degradable bags | ||||||||||||||||||||||||||||||||||||||||||||||||
(12% to 18%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item |
Description of Goods | ||||||||||||||||||||||||||||||||||||||||||||||||
| 1. | 4702 | Chemical wood pulp, dissolving grades | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2. | 4802 | Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non-perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803[other than Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks] |
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| 3. | 4804 | Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 |
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| 4. | 4805 | Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in Note 3 to this Chapter |
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| 5. | 4806 20 00 | Greaseproof papers | ||||||||||||||||||||||||||||||||||||||||||||||||
| 6. | 4806 40 10 | Glassine papers | ||||||||||||||||||||||||||||||||||||||||||||||||
| 7. | 4807 | Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets |
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| 8. | 4808 | Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803 |
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| 9. | 4810 | Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets of any size |
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Impact on paper sector:
The paper sector benefits from enhanced support for educational materials and sustainable packaging, while businesses producing specialty papers are encouraged to innovate and explore niche markets.
Key Takeaways
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Consumer Electronics: Reduced tax makes essential devices more affordable and encourages wider adoption.
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Paper Industry: Tax cuts on educational supplies and eco-friendly packaging help promote sustainability and accessibility.
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Business Strategy: Manufacturers and retailers should leverage lower GST to offer competitive pricing and new products while addressing consumer needs more effectively.
