GST on Construction Material — Cement Now 18%

Yes. Before 22 September 2025 cement sat in the 28% demerit slab. The 56th GST Council recommended, and CBIC notified, a cut to the 18% standard slab with effect from 22 September 2025. On ₹1 lakh of cement this reduces GST from ₹28,000 to ₹18,000 — a ₹10,000 saving.

Steel TMT bars, reinforcement bars (rebars), angles, channels and beams used in construction are taxed at 18% under HSN 7213/7214. This rate was not changed by GST 2.0 — structural steel remains in the 18% standard slab.

Ceramic, vitrified, porcelain and mosaic tiles are taxed at 18% under HSN 6907 — this covers both floor and wall tiles. Roofing/earthen tiles are at a lower rate. Finished slabs and tiles were not reduced by GST 2.0 and remain at 18%.

Building bricks and fly-ash bricks fall under a special composition-style scheme: 6% GST without input tax credit, or 12% with ITC (HSN 6815/6901/6904). Fly-ash and red clay bricks under the general rate were rationalised to 5%. AAC blocks with more than 50% fly-ash content attract 12%.

Natural sand, M-sand (manufactured sand), gravel and crushed stone used as concrete aggregate are taxed at 5% (HSN 2505 for sand, 2517 for gravel/crushed stone). These low rates were retained under GST 2.0.

Polished/finished marble and granite slabs and tiles are taxed at 18% under HSN 6802 — reduced from 28% under GST 2.0. Raw marble, travertine and granite blocks (HSN 2515/2516) were cut to 5% (from 12%) with effect from 22 September 2025.

Paints and varnishes (HSN 3208/3209), PVC pipes and fittings (3917), flat and toughened glass (7005/7007), aluminium profiles (7610) and ready-mix concrete (3824) are all taxed at 18%. These remain in the 18% standard slab after GST 2.0.

It depends on the end use. ITC on cement, steel and other inputs is blocked under Section 17(5)(c)/(d) when a building is constructed on own account and sold after completion (post occupancy certificate), because there is no output GST. Builders selling under-construction flats supply a taxable construction service and can claim proportionate ITC.

This is contested. Section 17(5)(d) blocks ITC on own-account construction, but where the building is used to make taxable rental supplies, courts have applied a functionality test (the Safari Retreats line of litigation). The position is not settled — take professional advice before claiming.

No. Residential developers who opted for the concessional 1% (affordable) / 5% (other) GST scheme on flat sales cannot claim any ITC on cement, steel or other inputs. The blocked credit is the trade-off for the lower output rate. See our GST on real estate guide.

No. GST paid on materials for a residential house built for your own personal use is blocked — it is treated as personal consumption, not a business input. ITC is only available where the construction is used to make a taxable outward supply.

A works contract (material plus labour to build immovable property) is a composite supply of service. Commercial and private residential construction contracts are taxed at 18%. Affordable-housing and specified government civil works (roads, bridges) attract a concessional 12%.

Imported materials attract IGST at the same rate as the domestic GST rate, plus Basic Customs Duty (BCD). For example, imported cement attracts 18% IGST at import (post 22 Sep 2025) plus customs duties. The importer can claim ITC on the IGST paid, subject to normal ITC eligibility.

Ready-mix concrete supplied as a finished product is taxed at 18% under HSN 3824. If concrete is produced and used as part of a construction works contract, the composite works-contract rate (12% or 18%) applies instead of a separate goods rate.

Yes, modestly. The cut on cement (28%→18%) and on polished marble/granite slabs (28%→18%), plus lower rates on raw stone blocks, reduce input costs. However, steel, tiles, paints, glass and sanitaryware remain at 18%, and developers under the 1%/5% flat-sale scheme cannot pass on ITC — so the saving mainly reaches self-build and ITC-eligible projects.