Notebook Manufacturers Demand Ban On Imports, Seek Anti-Dumping Duties Amid GST Concerns

The All India Notebook Manufacturers Association has demanded a ban on notebook imports and the imposition of anti-dumping duties on notebooks and exercise books shipped from abroad. While thanking the government and the Prime Minister for the GST reforms, aimed at simplifying taxation and supporting economic growth, notebook manufacturers said the exemption from GST had created unintended consequences for them.

Impact of ASEAN Free Trade Agreement on Indian Notebook Makers

The association said that the cost of imported notebooks at 0% GST works out cheaper than Indian-made notebooks. This is because the 0% GST on notebooks, with 0% custom duty on imports as per the ASEAN Free Trade Agreement, will play havoc with the Indian notebook industry. Under the ASEAN Free Trade Agreement, imports from large paper-manufacturing countries like Indonesia, Thailand, and Malaysia come in at zero customs duty.

Rising Costs of Raw Materials Hitting Indigenous Manufacturers

Paperboard and other raw materials required for notebook manufacturing in India, including packaging materials, gum, wire, and packaging films, attract 18% GST, which is being passed on to Indian notebook manufacturers, who have no avenues to obtain input tax credit in order to make their products competitive against imports, the association said. They added that paper boards consumed in the notebook industry are coated and the GST rate for the same has gone up from 12% to 18%, further increasing costs for indigenous manufacturers.

Call for Government Intervention and Policy Redressal

Because of these issues, the Indian notebook manufacturing sector faces imminent collapse, with grave consequences for lakhs of employment, investment, and self-reliance, the association said. Imports should be banned, as Indian manufacturers can adequately meet domestic demand, they added. The association has expressed concerns and submitted a detailed letter to Union Commerce Minister Piyush Goyal as well as to the GST Council for urgent redressal of the problem.