After the GST 2.0 reform effective 22 September 2025, cement is taxed at 18% — down from 28% (HSN 2523). Steel TMT bars, tiles, paints, PVC pipes, glass, sanitaryware and plywood remain at 18%. Sand, gravel and fly-ash bricks are at 5%, while bricks under the special composition scheme are 6% (no ITC) or 12% (with ITC). Polished marble & granite slabs are 18%; raw stone blocks dropped to 5%.
GST Rates on Construction Materials — Full List
The current GST rate and HSN code for every common building material, updated for the GST 2.0 two-slab structure effective 22 September 2025.
| Material | HSN | GST Rate | Notes |
|---|---|---|---|
| Cement (all types) | 2523 | 18% | Cut from 28% on 22 Sep 2025 |
| Steel TMT bars / rebar | 7213 / 7214 | 18% | Angles, channels, beams included |
| Sand (river / M-sand) | 2505 | 5% | Manufactured & natural sand |
| Gravel / crushed stone | 2517 | 5% | Aggregate for concrete & roads |
| Fly ash / red clay bricks | 6815 / 6901 | 6% / 12% | Special scheme: 6% no ITC, 12% with ITC |
| AAC blocks (>50% fly ash) | 6815 | 12% | Autoclaved aerated concrete blocks |
| Ceramic / vitrified tiles | 6907 | 18% | Floor & wall tiles, all varieties |
| Marble & granite — polished slabs | 6802 | 18% | Cut from 28%; raw blocks 5% |
| Marble / granite — raw blocks | 2515 / 2516 | 5% | Cut from 12% on 22 Sep 2025 |
| Plywood / blockboard | 4412 | 18% | Interior woodwork panels |
| Paints & varnishes | 3208 / 3209 | 18% | Emulsion, enamel, primer |
| PVC pipes & fittings | 3917 | 18% | Plumbing & drainage |
| Glass (flat / toughened) | 7005 / 7007 | 18% | Window panes, facades |
| Ready-mix concrete (RMC) | 3824 | 18% | Supplied as finished product |
| Aluminium doors / profiles | 7610 | 18% | Sections, curtain walls |
| Sanitary ware (WC, basins) | 6910 | 18% | Ceramic sanitary fixtures |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (Notification 09/2025-CT(R)). Confirm on the GST portal before invoicing.
Cement GST Cut From 28% to 18%
The single biggest change for the construction sector: cement moved out of the 28% demerit slab into the 18% standard slab under HSN 2523, with effect from 22 September 2025 (Notification 09/2025-CT(R)). This covers ordinary Portland (OPC), Portland pozzolana (PPC), aluminous, slag and other hydraulic cements.
Before Cement @ 28%
Now Cement @ 18%
On ₹1 lakh of cement the GST falls by ₹10,000. Because cement is a major structural cost, the 28%→18% cut can shave tens of thousands of rupees off a home build and lowers the input-tax burden on every project.
Buying materials in bulk for a project? Get your GST & ITC position reviewed.
Talk to a GST Expert →ITC on Construction Materials — When Is It Allowed?
For a builder, the GST rate on materials often matters less than whether the input tax credit can be claimed. Section 17(5)(c)/(d) of the CGST Act blocks ITC on goods and services used to construct immovable property on own account — but there are important exceptions.
| Scenario | ITC? | Legal basis |
|---|---|---|
| Builder selling completed flats (after OC) | No | Section 17(5)(d) — no output GST |
| Builder selling under-construction flats | Proportionate | Taxable supply of construction service |
| Commercial building constructed for renting | Yes* | Used for taxable rental supply |
| Factory / plant & machinery | Yes | Plant & machinery exception |
| Residential house for self-use | No | Personal consumption — blocked |
* Renting-of-property ITC on own construction is contested; the Safari Retreats issue turns on a functionality test — take advice.
Residential developers who opted for the 1% (affordable) / 5% (other) GST scheme on flats cannot claim any ITC on cement, steel or other inputs — the lower output rate is the trade-off. See our GST on real estate guide for the flat-sale rules.
Not sure if your project can claim material ITC?
Get an ITC Review →Works Contract GST Rate (Material + Labour)
When materials and labour are supplied together to build or repair immovable property, it is a works contract — a composite supply of service, not a sale of goods. A single GST rate then applies to the whole contract value.
| Works contract type | GST Rate | Notes |
|---|---|---|
| Affordable housing (govt scheme) | 12% | Concessional infrastructure rate |
| Government civil works (roads, bridges) | 12% | Specified public works |
| Commercial construction contract | 18% | Standard rate |
| Private residential construction contract | 18% | Standard rate |
Works-contract concessional rates for government/infra works continued under GST 2.0; verify the exact entry for your project.
Buy material yourself if
- You are a registered builder claiming proportionate ITC
- You want direct control over material quality & price
- Your project sells under-construction (taxable supply)
Use a works contract if
- You are an end-user building a home for self-use
- You prefer one composite bill for labour + material
- You cannot claim material ITC anyway (blocked)
Frequently Asked Questions
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