GST inversion on kraft paper locks ₹366 crore in monthly capital for box makers
Corrugated-box manufacturers say 18% GST on kraft paper versus 5% on finished boxes is straining cash flows across a ₹40,000 crore packaging industry, potentially raising costs for food, e-commerce, electronics and other retail supply chains.
Corrugated-box makers 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 food, e-commerce, electronics and other Indian retail supply chains.
Why this matters
ICCMA's warning follows the recent signal, "Corrugated-box makers flag GST inversion as monthly working-capital drag," reinforcing a pattern of tax-driven liquidity pressure across box manufacturing.
Retail-company signals are accelerating by 199000% QoQ.