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AINMA demands import price floor, GST reform
8 Sep
Summary
- Notebook industry seeks minimum import price on finished goods.
- Industry body calls for anti-dumping probe into Indonesian imports.
- Changes to GST rules requested to ease exporter working capital.
The All India Notebook Manufacturers Association (AINMA) has put forth significant demands to the Ministry of Commerce and Industry to address challenges faced by the domestic notebook and exercise book manufacturing sector. The industry is struggling with zero-duty imports from ASEAN countries, particularly Indonesia, which enter India under the ASEAN Free Trade Agreement with no Basic Customs Duty or IGST.
AINMA argues that while the GST Council reduced the tax on exercise books to nil, domestic manufacturers cannot claim Input Tax Credit (ITC) on exempt final products. This results in higher costs for raw materials like coated paperboard and packaging, which attract 18% GST. This cost disadvantage allows foreign suppliers to undercut local producers, threatening the survival of a sector capable of meeting domestic demand.
To counter these issues, AINMA has requested the imposition of a Minimum Import Price (MIP) on finished notebooks and an anti-dumping investigation into imports from Indonesia. Furthermore, the association seeks amendments to the Central Goods and Services Tax (CGST) Rules to enable exporters of domestically exempt goods to voluntarily pay IGST on export supplies, thereby accessing the ICEGATE refund system and alleviating working capital pressures.
