GST on Construction Material: Rates, HSN Codes & ITC Rules (2025-26)
Cement attracts 28% GST — the highest rate among construction materials. Steel TMT bars, tiles, PVC pipes, paints, and glass all fall at 18%. Bricks and sand are taxed at 5%, while AAC blocks and plywood sit at 12%. Builders selling under-construction flats can claim ITC; ITC is blocked for completed properties sold after occupancy certificate.
28%
GST on cement (HSN 2523) — single biggest material cost-driver in Indian construction. Applies to all Portland, white, blended, and aluminous cement variants.
GST Rates on Construction Materials — Full List
| Material | HSN Code | GST Rate | Notes |
|---|---|---|---|
| Cement (all types) | 2523 | 28% | Portland, white, blended, aluminous |
| Steel TMT bars / rebar | 7213 / 7214 | 18% | Angles, channels, beams included |
| Common burnt clay bricks | 6901 | 5% / 12% | 5% without ITC; 12% with ITC option |
| AAC blocks (autoclaved) | 6810 | 12% | Lightweight aerated concrete blocks |
| Fly ash bricks | 6815 | 5% | Eco-friendly alternative to clay bricks |
| Ceramic / vitrified tiles | 6907 | 18% | Floor and wall tiles, all varieties |
| Marble & granite (polished) | 6802 | 28% | Rough / unpolished blocks: 12% |
| Natural sand | 2505 | 5% | River sand, M-sand, manufactured sand |
| Gravel / crushed stone | 2517 | 5% | Aggregate for concrete and road base |
| Plywood / blockboard | 4412 | 12% | Interior woodwork panels |
| Paints & varnishes | 3208 / 3209 | 18% | Emulsion, enamel, primer, distemper |
| PVC pipes & fittings | 3917 | 18% | Plumbing and drainage |
| Glass (flat / toughened) | 7005 / 7007 | 18% | Window panes, facades, partitions |
| Electrical wires & cables | 8544 | 18% | Wiring, conduits, cables |
| Wooden doors & windows | 4418 | 12% | Solid wood frames and shutters |
| Aluminium doors / profiles | 7610 | 18% | Aluminium sections, curtain walls |
| Waterproofing compounds | 3824 | 18% | Chemical admixtures for concrete |
| Ready-mix concrete (RMC) | 3824 | 18% | Supplied as a finished product |
| Steel wire mesh / BRC | 7314 | 18% | Slab and road reinforcement mesh |
| Sanitary ware (WC, basins) | 6910 | 18% | Ceramic sanitary fixtures |
ITC on Construction Materials — When Allowed?
| 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 |
Works Contract GST Rates (Labour + Material)
| Works Contract Type | GST Rate |
|---|---|
| Affordable housing (PMAY / govt. scheme) | 12% |
| Commercial construction works contract | 18% |
| Government civil construction (roads, bridges) | 12% |
| Private residential construction contract | 18% |
Frequently Asked Questions
What is the GST rate on cement?
Cement attracts 28% GST under HSN code 2523 — the highest slab applied to any construction material. This covers Portland cement, white cement, blended cement, and aluminous cement. The 28% rate significantly increases the cost of construction and has been a subject of industry demand for rate reduction.
Are ceramic and vitrified tiles taxed at 18% GST?
Yes, all ceramic tiles, vitrified tiles, porcelain tiles, and mosaic tiles attract 18% GST under HSN code 6907. This applies to both floor tiles and wall tiles. Marble and granite (polished slabs) fall at 28% GST under HSN 6802, while rough unpolished marble blocks attract only 12%.
What is the GST rate on steel bars used in construction?
Steel TMT bars, reinforcement bars (rebars), angles, channels, and beams used in construction attract 18% GST under HSN codes 7213 and 7214. All structural steel for building purposes falls in the 18% slab, making it the second-highest rate after cement in the construction material category.
Can builders claim ITC on construction materials purchased for a project?
ITC on construction materials is blocked under Section 17(5)(d) of the CGST Act when the building is intended for sale after completion. ITC IS available if: the building is used for commercial renting (taxable supply), or the project is a factory or plant (plant and machinery exception). Builders selling under-construction flats can claim proportionate ITC on materials used.
What GST rate applies to imported building materials?
Imported building materials attract IGST at the same rate as domestic GST, plus Basic Customs Duty (BCD). For example, imported cement would attract 28% IGST at the time of import along with applicable customs duties. The importer can claim ITC on the IGST paid at import, subject to normal ITC eligibility rules under GST.
Last updated: 3 June 2026
◆ Available in 71 Cities
Gst On Construction Material Near You
Expert CA/CS assistance for gst on construction material across India. Click your city for local details.
→
New Delhi
→
Mumbai
→
Bengaluru (Bangalore)
→
Hyderabad
→
Chennai
→
Kolkata
→
Pune
→
Ahmedabad
→
Noida (UP)
→
Gurgaon (Gurugram)
→
Jaipur
→
Lucknow
→
Chandigarh
→
Surat
→
Kochi (Cochin)
→
Faridabad
→
Ghaziabad
→
Greater Noida
→
Panipat
→
Sonipat
→
Manesar (IMT)
→
Dharuhera
→
Mathura
→
Palwal
→
Agra
→
Kosi Kalan
→
Aligarh
→
Khair
→
Jewar (Noida International Airport)
→
Kanpur
→
Varanasi (Kashi)
→
Prayagraj (Allahabad)
→
Meerut
→
Bareilly
→
Moradabad
→
Gorakhpur
→
Firozabad
→
Saharanpur
→
Muzaffarnagar
→
Bulandshahr
→
Hapur
→
Karnal
→
Kurukshetra
→
Ambala
→
Hisar
→
Rohtak
→
Yamunanagar
→
Rewari
→
Bhiwani
→
Jodhpur
→
Udaipur
→
Kota
→
Ajmer
→
Bikaner
→
Ludhiana
→
Amritsar
→
Jalandhar
→
Patiala
→
Mohali (SAS Nagar)
→
Bathinda
→
Dehradun
→
Haridwar
→
Rudrapur
→
Shimla
→
Solan (Baddi-Barotiwala-Nalagarh)
→
Bhopal
→
Indore
→
Gwalior
→
Jammu
→
Srinagar
→
Panchkula