GST ON PENS, PAPERS & STATIONERY ITEMS

INTRODUCTION

With the implementation of the Goods and Services Tax (GST) in India, the taxation system has become more streamlined, impacting various sectors, including the stationery industry. GST on stationery items has introduced transparency and uniformity, but frequent rate revisions require businesses and consumers to stay informed. The GST rate for stationery items varies based on the type and materialranging from NIL for items like chalk and slates to 18% for metal-based or processed products. Accurate classification using the HSN code for stationery is essential for proper invoicing, compliance, and claiming input tax credit (ITC).

Over time, the GST Council has made several rate revisions to resolve issues like inverted duty structures and clarify product categorization. Some items fall under the category of exempt supply under GST, particularly educational materials or goods supplied directly to schools under specific conditions. Shopkeepers and retailers must also be aware of the GST rules for shopkeepers, including mandatory registration (based on turnover), issuing invoices with HSN codes, timely return filing, and displaying their GSTIN at the place of business.

Services associated with stationery, especially printing, also fall under GST. The GST on printing varies depending on whether the printing involves supply of material or just the service, generally taxed at 12% or 18%. Lastly, notebooks, which are a common educational necessity, are classified under HSN code 4820. The HSN code for notebook covers items like exercise books, diaries, and lab notebooks, typically attracting 12% GST.

This article explores all these key aspects in detail to help shopkeepers, educational institutions, and everyday consumers navigate GST rules more effectively.

GST COUNCIL UPDATES ON STATIONERY

• At the 47th GST Council meeting, several stationery items such as pencil sharpeners, paper knives, and drawing ink saw a rate hike from 12% to 18% to correct the inverted tax structure.
• At the 49th GST Council meeting (Feb 18, 2023), pencil sharpeners were shifted back to 12%, restoring their earlier rate.

GST RATE & HSN CODE FOR STATIONERY ITEMS – CHAPTER 96

Most traditional stationery items fall under Chapter 96 of the HSN (Harmonized System of Nomenclature). Below is a list of items and their applicable GST rates:

GST ON PAPER-BASED STATIONERY – CHAPTERS 48 & 49

Some stationery items, especially paper-based products, are classified under Chapters 48 and 49. Here’s a detailed breakdown post the 47th GST Council revisions:

12% GST Items (Common for Education Use)

18% GST Items (Processed or Specialized Paper Products)

HSN Code for Notebook

The HSN code for notebooks (including exercise books and diaries) is 4820. Products under this code generally attract 12% GST.

GST ON METAL-BASED STATIONERY – CHAPTER 83

Certain office and desk equipment made from base metals are classified under Chapter 83. These generally attract 18% GST, and include:

GST RULES FOR SHOPKEEPERS

Shopkeepers selling stationery or related services must follow these GST rules:

• GST Registration: Required if turnover exceeds ₹40 lakhs (₹20 lakhs in some states).
• Invoice Issuance: Must issue GST-compliant invoices with HSN codes.
• Return Filing: Monthly or quarterly filing of GSTR-1 and GSTR-3B.
• E-Way Bills: Required for transporting goods over ₹50,000 in value across states.
• Display of GSTIN: Must be displayed at the place of business.

GST ON PRINTING

Printing services are taxable under GST. The applicable rate depends on the nature of service:

• Printing with material (supply + service): 18%
• Printing on customer-supplied material: Considered a service, usually taxed at 12% or 18%
• Books and newspapers printing: May be exempt if classified under educational or public interest categories.

RECENT CHANGES TO NOTE

• Printing Ink, Drawing Ink, and Writing Ink: These now attract 18% GST (increased from 12% as per the 47th GST Council meeting).
• Maps, Atlases, and Globes: Earlier exempt under printed material, these now attract 12% GST.
• Pencil Sharpeners: Rate cut from 18% back to 12%, confirmed in the 49th GST Council meeting.

IMPLICATIONS FOR BUSINESSES & CONSUMERS

• Businesses dealing in stationery must ensure correct HSN classification to charge and claim the appropriate GST.
• Educational institutions and corporates purchasing stationery for official use can avail Input Tax Credit (ITC).
• End consumers, especially students and educators, may see price differences on items depending on material and classification.

EXEMPT SUPPLY UNDER GST

Exempt supplies are goods or services not subject to GST. While most stationery items are taxable, some educational supplies used directly by schools may be exempt under specific conditions. Additionally, books (other than exercise books or notebooks) are generally exempt supply under GST.

CONCLUSION

In conclusion, the implementation of GST has brought greater clarity to the taxation of everyday goods, including stationery. GST on stationery items has standardized tax rates but varies based on material and classification. For example, the GST rate for stationery items ranges from NIL on basic educational tools like chalk and slates, to 12% or 18% for items such as pens, folders, and office supplies. Accurate classification using the HSN code for stationery is crucial for businesses to ensure correct billing and seamless input tax credit claims. While most items are taxable, exempt supply under GST applies to certain educational goods and books, offering some relief to students and institutions.

Additionally, GST rules for shopkeepers require compliance in registration, invoicing with HSN codes, return filing, and GSTIN display at business premises. Services like printing are also included in the tax framework, where GST on printing depends on whether the material is supplied by the printer or the client, typically taxed at 12% or 18%. For educational institutions and suppliers, understanding the HSN code for notebook, which is 4820 and attracts 12% GST, is particularly important. Staying informed about these classifications and rate changes is essential for both compliance and cost-effectiveness in business operations.