GST on Building Material: Rates, HSN Codes & ITC Rules (2025)
Cement attracts 28% GST — the highest in the construction category. Steel TMT bars, tiles, PVC pipes, glass, and paints are taxed at 18%. Bricks and sand fall at 5%, AAC blocks and plywood at 12%. ITC on construction materials is blocked for builders selling completed properties but available for commercial rental projects.
28%
GST on cement (HSN 2523) — the single largest material cost driver in Indian construction, applicable to all Portland, white, and blended cement types.
GST Rate List: Building & Construction Materials
| Material | HSN Code | GST Rate | Notes |
|---|---|---|---|
| Cement (all types) | 2523 | 28% | Portland, white, blended |
| Steel TMT / rebar | 7213 / 7214 | 18% | Angles, channels, beams included |
| Common burnt clay bricks | 6901 | 5% / 12% | 5% without ITC; 12% with ITC |
| AAC blocks (autoclaved) | 6810 | 12% | Lightweight building blocks |
| Fly ash bricks | 6815 | 5% | Eco-friendly alternative |
| Ceramic / vitrified tiles | 6907 | 18% | Floor & wall tiles |
| Marble & granite (polished) | 6802 | 28% | Rough blocks: 12% |
| Sand (natural) | 2505 | 5% | River sand, M-sand |
| Gravel / crushed stone | 2517 | 5% | Aggregate for concrete |
| Plywood / blockboard | 4412 | 12% | Interior woodwork |
| Paints & varnishes | 3208 / 3209 | 18% | Emulsion, enamel, primer |
| PVC pipes & fittings | 3917 | 18% | Plumbing & drainage |
| Glass (flat / toughened) | 7005 / 7007 | 18% | Windows, facades |
| Electrical wires & cables | 8544 | 18% | Wiring, conduits |
| Doors & windows (wood) | 4418 | 12% | Solid wood frames |
| Aluminium doors/windows | 7610 | 18% | Aluminium sections & profiles |
| Waterproofing compounds | 3824 | 18% | Chemical admixtures |
| Ready-mix concrete (RMC) | 3824 | 18% | Supplied as a product |
ITC (Input Tax Credit) on Construction Materials
| Scenario | ITC Available? | Legal Basis |
|---|---|---|
| Builder selling completed flats | No (blocked) | Section 17(5)(d) CGST Act |
| Builder selling under-construction flats | Proportionate ITC allowed | Works contract — taxable supply |
| Commercial building for renting out | Yes | Used for taxable GST supply (rental) |
| Factory / plant construction | Yes (for contractor) | Plant and machinery exception |
| Residential for self-use | No | Personal consumption — blocked |
GST on Works Contract (Labour + Material)
When a contractor supplies both labour and material for construction, it is treated as a Works Contract under GST. The applicable rate is:
| Works Contract Type | GST Rate |
|---|---|
| Affordable housing (PMAY / govt. scheme) | 12% |
| Commercial construction works contract | 18% |
| Govt. civil construction (roads, bridges) | 12% |
| Residential construction — private | 18% |
Frequently Asked Questions
What is the GST rate on cement?
Cement attracts 28% GST — the highest slab for a construction material. This applies to all types of cement including Portland cement, white cement, and blended cement under HSN code 2523. The high rate is a major cost driver in construction projects, particularly for affordable housing.
What is the GST rate on steel TMT bars used for construction?
Steel TMT bars and reinforcement bars (rebars) used in construction attract 18% GST under HSN code 7213/7214. This applies to all forms of structural steel including angles, channels, beams, and wire rods used in building construction.
What is the GST rate on tiles — ceramic and vitrified?
Ceramic tiles, vitrified tiles, porcelain tiles, and mosaic tiles all attract 18% GST under HSN code 6907. Floor tiles and wall tiles fall in the same slab. Marble and granite slabs (polished) attract 28% GST, while unpolished/rough marble blocks are taxed at 12%.
Can builders claim ITC on GST paid for construction materials?
ITC on construction materials is blocked under Section 17(5)(d) of the CGST Act for construction of immovable property intended for sale after completion. However, ITC IS available if: (1) materials are used for a building meant for renting out (commercial), or (2) the project involves works contract services for a factory or plant. Builders selling under-construction flats can claim ITC proportional to taxable supply.
What is the GST rate on bricks vs AAC blocks?
Common burnt clay bricks (HSN 6901) attract 5% GST when purchased from an unregistered dealer or without ITC, or 12% GST with ITC. Autoclaved Aerated Concrete (AAC) blocks attract 12% GST under HSN 6810. Fly ash bricks attract 5% GST. Sand-lime bricks attract 12% GST.
Last updated: 3 June 2026
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