Indian newsprint manufacturers have sought clarification from the government on the condition of ‘actual user’ because, post GST, there has been no mention of any condition on the buyer for domestic newsprint.
Vijay Kumar, secretary general of the Indian Newsprint Manufacturers’ Association, explained that before the implementation of the GST, newsprint could be produced only by registered mills and sold only to registered publishers to avail of concessional taxes.
Sales to third parties was treated as sale of other grade paper and taxes applied accordingly. However, after GST, there is ambiguity on the actual user condition.
It is learnt that with lack of clarity on the actual user, third parties are actively engaged in sale and purchase of newsprint.
For more information, you can click here.