CementCeramics & Building Materials

GST on Cement & Ceramics — Cement 28%, Tiles 18%, Bricks 5-12%

Complete GST guide for cement & ceramics: cement (28% — highest slab), ceramic tiles (18%), sanitary ware (18%), marble & granite (18%), bricks (5-12%), ready-mix concrete (18%), glass (18%), AAC blocks (12%), ITC impact on real estate, and composition scheme for brick kilns.

28%

Cement (all types)

18%

Ceramic Tiles

18%

Sanitary Ware

18%

Marble/Granite

12%

Fly Ash Bricks

5%

Building Bricks (clay)

18%

Ready-Mix Concrete

5%

Sand/Gravel

Cement & Ceramics — GST Framework

Cement — 28% GST (Highest Slab)

ALL cement types: 28% GST — one of the few construction materials still at highest slab. Portland cement (OPC — Ordinary Portland Cement): 28% (HSN 2523). Portland Pozzolana Cement (PPC — fly ash based): 28%. Portland Slag Cement (PSC — blast furnace slag): 28%. White cement: 28%. Rapid hardening cement: 28%. Sulphate resistant cement: 28%. Low heat cement: 28%. Coloured cement: 28%. Cement clinker: 28% (intermediate product). WHY 28% STILL: cement is perceived as essential construction material BUT generates ₹30,000+ crore GST revenue — government reluctant to reduce. Industry demand: reduce to 18% (argued since 2017 — every GST Council meeting). Counter-argument: cement companies (UltraTech, Ambuja, ACC, Shree, Dalmia) are highly profitable — can absorb 28%. Real impact: housing costs increase — final consumer (homebuyer) bears 28% on cement component. CEMENT FOR GOVERNMENT PROJECTS: same 28% — no exemption for affordable housing or infrastructure cement. ITC AVAILABILITY: builders/contractors claim ITC on cement (28%) against output tax on construction (12-18%). But: for residential projects using 1% GST scheme (affordable housing) or 5% scheme (non-affordable) — NO ITC available. Cement is the LARGEST input cost where ITC is lost in the real estate 1%/5% scheme.

Ceramic Tiles & Sanitary Ware — 18%

Ceramic tiles (floor/wall): 18% GST (HSN 6907/6908). Reduced from 28% to 18% in November 2017 — one of the earliest GST rate rationalizations. Vitrified tiles: 18%. Glazed tiles: 18%. Porcelain tiles: 18%. Mosaic tiles: 18%. Roofing tiles (clay/ceramic): 18%. Refractories (industrial ceramic): 18%. Sanitary ware (ceramic): 18% (HSN 6910). Wash basins: 18%. Water closets (WC/toilet): 18%. Urinals: 18%. Bathtubs (ceramic): 18%. Shower trays: 18%. Bidets: 18%. Kitchen sinks (ceramic): 18%. Pipes/fittings (ceramic): 18%. PLASTIC sanitary ware: 18% (same rate). STAINLESS STEEL sanitary ware: 18%. Note: sanitary ware includes all 'sanitary fixtures' regardless of material — all 18%. MAJOR PLAYERS: Kajaria, Somany, Johnson, Orient Bell (tiles); Hindware, Cera, Parryware, Jaquar (sanitary). ITC: available to builders/contractors on tiles and sanitary ware purchases. For homeowners (self-construction): no ITC (unregistered person). Imported tiles (Italy, Spain, China): 18% IGST + customs duty (15-20%) — makes imported tiles significantly more expensive.

Marble, Granite & Natural Stone — 18%

Marble (blocks/slabs/tiles): 18% GST (HSN 2515/6802). Granite (blocks/slabs): 18%. Sandstone: 18%. Limestone (building quality): 5% (HSN 2521). Travertine: 18%. Quartzite (decorative): 18%. Slate: 18%. Onyx: 18%. DISTINCTION — raw vs processed: (a) Marble blocks (rough/sawn): 18%. (b) Marble slabs (polished/processed): 18%. (c) Marble chips/granules: 18%. (d) Marble dust/powder: 5% (different HSN — waste material). QUARRYING: (a) Mining service (extraction): 18% (service). (b) Royalty paid to state government: 18% under RCM. (c) Stone crushing: 5% (crushed stone aggregate). (d) Gravel/pebbles: 5%. PROCESSING: (a) Cutting/polishing service (job work on marble): 18%. (b) Engraving/etching (memorial stones): 18%. NATURAL STONE for construction: Granite kitchen counter: 18%. Granite flooring: 18%. Marble staircase: 18%. Stone cladding/facade: 18%. Cobblestones/paving: 18%. ARTIFICIAL/ENGINEERED STONE: Quartz surfaces (Caesarstone): 18%. Sintered stone: 18%. Terrazzo tiles: 18%. Artificial marble (polymer-based): 18%. Corian/solid surface: 18%. All artificial stone products: 18% (same as natural).

Bricks & Blocks — 5% to 12%

Building bricks (traditional clay/mud): 5% GST (HSN 6901/6904). Fly ash bricks: 12%. Concrete blocks (hollow/solid): 12%. AAC blocks (Autoclaved Aerated Concrete): 12%. CLC blocks (Cellular Lightweight Concrete): 12%. Refractory bricks (industrial kiln): 18%. WHY DIFFERENT RATES: Traditional clay bricks at 5% — protect small/unorganized brick kiln industry (millions of workers). Fly ash bricks at 12% — more 'manufactured' product, uses industrial waste. Concrete blocks at 12% — factory-made, organized sector. ITC IMPACT: (a) Builder using 5% bricks: ITC of 5% available (small). (b) Builder using 12% AAC blocks: ITC of 12% available (better). (c) For 1%/5% real estate scheme: NO ITC — so 5% bricks are cheapest. (d) For commercial construction (18% output): higher ITC on 12% blocks is beneficial. COMPOSITION SCHEME: small brick kilns (turnover <₹1.5 crore) can opt for composition scheme — pay 1% GST (no ITC, simplified returns). Many traditional kilns use this. SUPPLY CHAIN: Clay mining: 5% (mineral). Coal/fuel for kiln: 5-12%. Transport: 5% (GTA) or 12% (full rate). Packing material: 12-18%. The effective tax on final brick is actually lower than headline 5% because of embedded taxes in fuel/transport.

Ready-Mix Concrete (RMC) — 18%

Ready-mix concrete: 18% GST (HSN 3824/2523). This is a DEBATED classification — two positions: POSITION 1 (Industry): RMC is 'goods' at 18% (HSN 3824 50 10 — concrete mix). POSITION 2 (Department — for on-site mixing): if concrete is mixed at construction site by the RMC supplier, it could be 'composite supply' or even 'works contract'. Current consensus: RMC supplied from batching plant to site = goods (18%). RMC mixed at site by supplier using their plant: still goods (18%) — but attracts attention. COMPONENTS: Cement: 28% (input). Sand: 5% (input). Aggregate (stone chips): 5% (input). Admixtures (chemical): 18% (input). Water: 0% (exempt). Transport (transit mixer): included in RMC price. ITC POSITION: RMC supplier claims ITC on cement (28%), sand (5%), aggregate (5%) against output of 18%. NET: supplier pays effective 18% minus ITC = typically 6-8% net. For BUILDER purchasing RMC: claims 18% ITC (useful for commercial projects). For residential (1%/5% scheme): no ITC — RMC cost is fully borne. PRECAST CONCRETE products (precast slabs, beams, walls): 18%. Concrete pipes: 18%. Concrete poles (electric/telecom): 18%. Concrete sleepers (railway): 5% (railway goods — concessional). Concrete blocks: 12% (separate classification from RMC).

Glass & Allied Products — 18%

Float glass (window/door): 18% (HSN 7005). Tempered/toughened glass: 18%. Laminated safety glass: 18%. Insulated glass (double-glazed): 18%. Mirror glass: 18%. Glass blocks (building): 18%. Glass fibre (insulation): 18%. Glass bottles/containers: 18%. Laboratory glassware: 18%. Optical glass/lenses: 12% (specific HSN for corrective lenses). Spectacle glass (prescription): 12%. Glass bangles: 0% (EXEMPT — traditional/cultural). Sindoor, kumkum: 0% (cultural). ALUMINIUM & UPVC SECTIONS (with glass): Aluminium windows/doors: 18% (HSN 7610). UPVC windows/doors: 18% (HSN 3925). Aluminium composite panels (ACP): 18%. Structural glazing systems: 18% (service if installation — works contract). WORKS CONTRACT: if glass supplier also installs (curtain walling, structural glazing): (a) Supply + installation = works contract to immovable property: 12-18%. (b) Pure supply (buyer installs): 18% goods. MAJOR GLASS COMPANIES: Saint-Gobain, Asahi India Glass (AIS), Gujarat Borosil, HNG Float Glass — all charge 18%. SAFETY/BULLET-PROOF glass: 18% (no concession for security purpose). AUTO windshield glass: 28% (motor vehicle parts — highest slab). KEY ANOMALY: glass for solar panels — 5% (solar incentive). Glass for buildings — 18%. Same product, different end-use classification.

Cement & Ceramics — GST Rate Table

ItemHSNGST RateNotes
Cement (OPC/PPC/PSC/all types)252328%Highest slab — no reduction yet
Cement clinker2523 1028%Intermediate product
Ceramic tiles (floor/wall)690718%Reduced from 28% (Nov 2017)
Sanitary ware (ceramic/plastic)691018%Basins, WC, bathtubs
Marble slabs/blocks680218%All natural decorative stone
Granite (polished/blocks)680218%Counters, flooring
Building bricks (clay/mud)69045%Traditional kiln bricks
Fly ash bricks/blocks681512%Industrial waste-based
AAC/concrete blocks681012%Autoclaved/lightweight
Ready-mix concrete (RMC)382418%From batching plant
Sand/gravel/crushed stone2505/25175%Natural mineral
Glass (float/tempered/laminated)7005/700718%Building glass

Frequently Asked Questions

Why is cement still at 28% GST — will it be reduced to 18% and what is the industry impact?
CEMENT AT 28% — the longest-standing industry demand for rate reduction. WHY IT REMAINS AT 28%: (1) REVENUE: cement generates ₹30,000-35,000 crore GST annually — one of the top revenue items. Reducing to 18% would lose ₹8,000-10,000 crore revenue. (2) PROFITABILITY: top cement companies (UltraTech, Ambuja, Shree Cement) have 20-25% EBITDA margins — perceived as 'able to bear' high tax. (3) NO STATE CONSENSUS: GST Council needs state agreement — cement-producing states (Rajasthan, AP, Karnataka) earn state GST share — reluctant to reduce. (4) POLITICAL PERCEPTION: cement = construction = builder/corporate — not seen as 'common man essential' (unlike food). INDUSTRY ARGUMENTS FOR 18%: (a) Cement is essential for affordable housing — 28% makes homes expensive. (b) Government's own 'Housing for All' scheme uses cement — paying 28% GST to itself. (c) Every ₹1 reduction in cement price creates ₹8 multiplier in construction sector. (d) Pakistan (17%), Bangladesh (15%), Vietnam (10%) — India's rate highest globally. (e) 85% of cement goes to individual house builders (IHB) who CANNOT claim ITC — they bear full 28%. PRACTICAL IMPACT: House construction (100 sq.m): uses ~15 tonnes cement. Cost: ₹5,250/tonne × 15 = ₹78,750. GST at 28% = ₹22,050 (for individual). If 18%: ₹14,175. Savings: ₹7,875 per house. LIKELY OUTCOME: industry expects reduction to 18% in 2025-26 — but has been expecting it since 2017.
How does ITC work for real estate projects using cement, tiles, and other building materials at different GST rates?
COMPLEX — depends on which output scheme the builder chose: SCHEME 1: Affordable housing — 1% GST (no ITC): Builder charges 1% on apartment sale (carpet area ≤60 sq.m, value ≤₹45 lakh). CANNOT claim ITC on ANY inputs: cement (28%), tiles (18%), steel (18%), sand (5%), labour (18%). Effective cost: builder bears full input taxes — factors into selling price. Cement input: 28% fully embedded in cost. This makes affordable housing EXPENSIVE despite 1% output rate. SCHEME 2: Non-affordable housing — 5% GST (no ITC): Builder charges 5% on apartment sale. Same rule: CANNOT claim ITC. All input taxes (cement 28%, tiles 18%, RMC 18%) borne by builder. SCHEME 3: Commercial construction — 12-18% GST (with ITC): Offices, shops, malls: builder charges 12% (works contract to government) or 18% (works contract to private). CAN claim ITC on all inputs. Cement ITC: 28% claimed. Tiles ITC: 18% claimed. RMC ITC: 18% claimed. NET tax paid is much lower (effective 5-8%). SCHEME 4: Self-construction (individual building own house): No GST output (not a supply — own use). No ITC claimable (not registered for construction). Bears FULL input taxes: cement 28%, tiles 18%, bricks 5%. Cannot recover anything. COMPARISON: On ₹1 crore construction cost, embedded GST roughly: Scheme 1 (1%, no ITC): ₹12-15 lakh embedded in cost. Scheme 3 (18% with ITC): ₹2-4 lakh net tax cost. Individual self-builder: ₹12-15 lakh embedded (same as scheme 1). This is why the 'no ITC' scheme is controversial — sounds low (1%/5%) but actual tax burden is HIGH.
What is the GST on fly ash bricks vs regular bricks — why different rates and how does composition scheme apply?
RATE DIFFERENCE: Clay/mud bricks: 5% (HSN 6904). Fly ash bricks: 12% (HSN 6815). Concrete blocks: 12% (HSN 6810). WHY DIFFERENT: (a) Clay bricks = traditional/unorganized sector (millions of small kilns, rural employment) — concessional 5% to protect livelihoods. (b) Fly ash bricks = 'green' product using industrial waste (fly ash from power plants) — but manufactured in organized factories — 12%. (c) Policy conflict: government WANTS to promote fly ash bricks (environmental — reduces coal ash dumping) but TAXES them higher (12% vs 5%) — contradictory. COMPOSITION SCHEME: Brick kilns with turnover ≤₹1.5 crore can opt for composition. Rate: 6% (special composition rate for manufacturers — effective 1% after CGST notification). Wait — correction: Composition for manufacturers = 1% (0.5% CGST + 0.5% SGST). NO ITC available under composition. No inter-state supply allowed. Quarterly returns (CMP-08). WHO USES IT: small traditional brick kilns (annual production <50 lakh bricks typically). PRACTICAL COMPARISON (for builder buying bricks): Option A: Buy clay bricks from composition kiln: Price ₹7/brick (inclusive of 1% comp tax). Builder gets NO ITC (supplier is composition — no tax breakup on invoice). Option B: Buy fly ash bricks from regular dealer: Price ₹8/brick + 12% GST = ₹8.96/brick. Builder claims ₹0.96 ITC. Net cost: ₹8/brick. If builder is on 'no ITC' scheme (residential): Option A better (₹7 vs ₹8.96). If builder is on 'with ITC' scheme (commercial): Option B better (net ₹8 — better quality product).
How is GST handled on marble and granite — from quarrying to final installation at customer site?
FULL CHAIN — quarry to installation: STAGE 1 — QUARRYING/MINING: (a) Mining rights/royalty to state government: 18% under RCM (miner pays). (b) Rough blocks extracted: 18% (marble/granite blocks — HSN 2515/2516). (c) Mining service (if outsourced): 18%. (d) Explosives used: 18%. (e) Transport from quarry: 5% (GTA) or 12% (full rate). KEY: Rajasthan (marble — Makrana), Karnataka, AP, Tamil Nadu (granite — major quarrying states). STAGE 2 — PROCESSING/CUTTING: (a) Cutting into slabs (gangsaw): 18% (processing service). (b) Polishing: 18% (value addition). (c) Edge profiling/chamfering: 18%. (d) Calibration/sizing: 18%. (e) If job work (process on customer's material): 18% on processing charges only. STAGE 3 — TRADING/WHOLESALE: (a) Sale of processed slabs/tiles: 18% (HSN 6802). (b) Wastage/off-cuts: 5% (marble powder/chips — different HSN). (c) Stock transfer to branch: no GST (same GSTIN). (d) Inter-state branch transfer: taxable if different GSTIN. STAGE 4 — RETAIL/SHOWROOM: (a) Sale to customer: 18%. (b) Display/sample (free): no GST. STAGE 5 — INSTALLATION: (a) Pure supply (customer installs): 18% on material. (b) Supply + installation at site (immovable property): WORKS CONTRACT — 18% on total (material + labour). (c) Installation-only (customer provides marble): 18% on labour/service. (d) For residential under-construction: 12% (works contract to promoter for affordable) or 18% (non-affordable). PRACTICAL: customer buying marble for existing home renovation — pays 18% on marble purchase + 18% on installation labour. Total effective: 18% (if same supplier does both = composite supply at 18%).

Construction Material Billing — Cement 28%, Tiles 18%, Multi-Rate ITC Tracking

Laabam.One handles construction sector GST: cement purchase tracking at 28%, ceramic tile invoicing at 18%, brick composition scheme billing, RMC supply management, marble works-contract classification, multi-rate ITC reconciliation for real estate projects, and Section 17(5) ITC reversal for residential schemes.

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