Corrugated-box makers flag GST inversion as monthly working-capital drag

India’s corrugated-box manufacturers say the 18% GST on kraft paper versus 5% on finished boxes locks up ₹366 crore in working capital each month, adding pressure across e-commerce, food, electronics, textiles and farm supply chains.

— Filed Tue, 4 Aug, 2026, 09:39 IST · Source The Hindu BusinessLine · Updated

India’s corrugated-box MSMEs say the GST structure—18% on kraft paper versus 5% on finished boxes—locks ₹366 crore of working capital monthly, raising costs for packaging used across e-commerce, food, electronics, textiles and agricultural supply chains.

Why this matters

No related recent ICCMA signals are listed; this signal focuses on how GST credit accumulation is raising financing pressure for corrugated-box manufacturers and their customer supply chains.

Retail-company signals are accelerating, up +198971% QoQ.