18% GST on Pens, School Bags, Printed Books from Sept 22 Under New CBIC Rules
The Wire Staff
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New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) has issued a sweeping notification revising Goods and Services Tax (GST) rates for nearly 1,200 goods, effective September 22, The Hindu Business Line reported. The changes will significantly impact everyday items like pens, school bags, and printed books, which will now attract 18% GST.
The notification implements the GST Council’s September 3 decision to rationalise GST rates, with all 28 states and three Union Territories expected to notify the new rates ahead of the deadline. The revised chart consolidates the tax structure into seven schedules, aimed at providing greater clarity and consistency.
Ballpoint pens, fountain pens, markers, and other writing instruments; previously taxed at varying rates, are now uniformly placed under the 18% slab (9% CGST 9% SGST). School bags, satchels, suitcases, vanity cases, musical instrument cases, and travel bags also fall under the same category. In a relief to students and teachers, writing chalk and tailor’s chalk will now be fully exempted, down from 12% GST.
However, the inclusion of uncoated paper used for printed books under the 18% rate has triggered concern. While laboratory notebooks remain exempt, printed books are not on the exemption list, which industry experts fear could raise book prices and affect affordability.
Tax experts say the early notification gives businesses time to adjust pricing, update ERP systems, and realign supply chains. “This step ensures that all formalities are now complete, allowing the business focus to be purely on execution going forward,” Mahesh Jaising, partner at Deloitte India, told The Hindu Business Line. EY India’s Saurabh Agarwal emphasised that the benefits of rate rationalisation must be passed on to consumers.
Analysts believe the rationalisation provides legal certainty and will reduce disputes, though the potential rise in education-related costs remains a concern for households. With the reforms now formalised, industry stakeholders say they are better positioned to implement the changes smoothly from September 22.
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