After the GST 2.0 reform (effective 22 September 2025), cement now attracts 18% GST — cut from the earlier 28%. Steel TMT bars, tiles, paints, PVC pipes, glass and plywood are taxed at 18%; sand, gravel and fly-ash bricks at 5%; clay bricks at 6% (no ITC) or 12% (with ITC) under the brick special scheme. Builder ITC on materials is generally blocked under Section 17(5)(d) for property sold after completion.
GST Rate List — Building & Construction Materials
Current GST rate and HSN code for every major construction material, reflecting the GST 2.0 two-slab structure. Verify the exact classification on the official portal before invoicing.
| Material | HSN | GST Rate | Notes |
|---|---|---|---|
| Cement (all types) | 2523 | 18% | Cut from 28% — Portland, white, blended |
| Steel TMT / rebar | 7213 / 7214 | 18% | Angles, channels, beams, wire rods |
| Sand (natural / M-sand) | 2505 | 5% | River sand, manufactured sand |
| Gravel / crushed stone | 2517 | 5% | Aggregate for concrete |
| Clay bricks (burnt) | 6901 | 6% / 12% | Brick special scheme: 6% no ITC / 12% with ITC |
| Fly-ash bricks | 6815 | 5% | Eco-friendly alternative |
| AAC blocks (autoclaved) | 6810 | 12% | Lightweight building blocks |
| Ceramic / vitrified tiles | 6907 | 18% | Floor & wall tiles |
| Marble & granite (polished) | 6802 | 18% | Cut from 28%; rough blocks 5% |
| Paints & varnishes | 3208 / 3209 | 18% | Cut from 28% — emulsion, enamel, primer |
| PVC pipes & fittings | 3917 | 18% | Plumbing & drainage |
| Plywood / blockboard | 4412 | 18% | Interior woodwork |
| Glass (flat / toughened) | 7005 / 7007 | 18% | Windows, facades |
| Electrical wires & cables | 8544 | 18% | Wiring, conduits |
| Aluminium doors / windows | 7610 | 18% | Sections & profiles |
| Waterproofing / admixtures | 3824 | 18% | Chemical compounds, RMC |
Rates reflect the GST 2.0 rationalisation effective 22 September 2025. Confirm on gst.gov.in / cbic-gst.gov.in before invoicing.
Not sure of the right HSN or rate for a material you trade in?
Get My GST Rate →GST 2.0 — Materials That Got Cheaper
The GST 2.0 reform collapsed the old four-slab structure into a two-slab (5% / 18%) system and removed the 28% slab for most goods. For construction, the headline change is cement dropping from 28% to 18% — the single largest material-cost driver in Indian building.
Old slabs (up to 21 Sep 2025)
- Cement — 28%
- Marble & granite (polished) — 28%
- Paints & varnishes — 28%
- Four-slab structure (5/12/18/28)
- Higher embedded cost in projects
GST 2.0 (from 22 Sep 2025)
- Cement — 18%
- Marble & granite (polished) — 18%
- Paints & varnishes — 18%
- Two-slab structure (5 / 18)
- Lower material cost per project
Steel TMT (18%), sand and gravel (5%), the brick special scheme (6% / 12%) and PVC pipes (18%) were already outside the 28% slab and are unchanged. The rate cuts mainly benefit projects that are cement, stone and paint heavy.
Trading in construction scrap, steel or stone? Get the full rate picture.
See GST on Steel →Can Builders Claim ITC on Materials?
For most builders the answer is no. Input tax credit on goods and services used to construct immovable property is blocked under Section 17(5)(d) of the CGST Act when the property is sold after completion. There are important exceptions.
| Scenario | ITC? | Legal Basis |
|---|---|---|
| Builder selling completed flats | No | Blocked — Section 17(5)(d) |
| Under-construction flats (before completion certificate) | Partial | Taxable supply — proportionate ITC |
| Commercial building constructed for renting out | Yes | Used for taxable rental supply |
| Plant & machinery construction | Yes | P&M exception to 17(5)(d) |
| Residential property for self-use | No | Personal consumption — blocked |
The Safari Retreats line of rulings has narrowed the "plant" exception — take advice before claiming.
A developer selling completed flats absorbs the 18% GST on cement, steel and tiles as an embedded cost — it cannot be recovered as ITC. This is why the rate cut on cement directly reduces project cost, and why classification errors on materials hit the bottom line.
Confused about blocked credit on construction inputs?
Read Blocked Credit Rules →GST on Works Contract (Construction)
When a contractor supplies both labour and material for construction, it is a works contract — a composite supply of service, not a sale of goods. The rate depends on the project type, not on individual material rates.
| Works Contract Type | GST Rate | Notes |
|---|---|---|
| Affordable housing (PMAY / notified scheme) | 12% | Concessional rate for eligible units |
| Government civil works (roads, bridges) | 12% | Specified government contracts |
| Commercial construction works contract | 18% | Offices, malls, factories |
| Private residential construction | 18% | Standard works-contract rate |
Works-contract classification is fact-specific; confirm the notification applicable to your project.
- GST registration for material supplier / contractor
- Correct HSN & rate on every material
- Tax invoice with HSN and rate
- Works-contract vs goods-sale classification
- ITC eligibility check (17(5)(d))
- E-way bill for material movement
- E-invoicing (if turnover applies)
- GSTR-1 & GSTR-3B filing
- ITC reconciliation on eligible inputs
- Reverse charge on unregistered purchases
Frequently Asked Questions
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