GST Rate Table For Construction Materials

GST Rate Table For Construction Materials

India adopted the Goods and Services Tax (GST) as an indirect tax on the supply of goods and services. It streamlines the cascading of taxes on customers and combines several levies into one. However, since the GST on building materials like cement, sand, steel, bricks, and stones continues to be high, the real estate industry is still reeling under the weight of high taxes.

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The Goods and Services Tax (GST), which combined all the levies into one and streamlined the system, was established to ease the tax regime. In spite of this, the developer community continues to struggle with a challenging GST calculation procedure because every raw material used in the building sector is subject to a distinct GST slab.

What is GST? India's economy, which is among the fastest-growing in the world, cannot afford to have a complicated tax structure. There were many taxes imposed on the provision of goods and services before to the implementation of the Goods and Services Tax (GST) regime,

including excise duty, services tax, customs duty, surcharges, state-level Value Added Tax (VAT), and octroi, among others.

Here is a breakdown of the GST rates applied to building materials:

What are the GST rates for construction materials?

What is the sand GST rate?

All types of natural sand—colored or uncolored—aside from sand that contains metals are covered by chapter 26 of the HSN code. Sand has a set five percent GST rate. In addition, a GST of 18% is applied to bituminous materials such oil shale, tar sands, bitumen, asphalt, natural asphaltites, and asphaltic rocks.

What is the brick GST rate? 

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Bricks are subject to a five to 28 percent GST charge. Building bricks, other bricks made of siliceous earth, fossil meal, and similar materials are subject to a 5% GST, whereas blocks or panels of multicellular foam glass are subject to a 28% GST. Fly ash bricks are subject to a 5% GST. A 28 percent GST is applied on items made of cement, artificial stone, reinforced or unreinforced concrete; flagstone, building blocks, cemented bricks, and prefabricated building components.

A tax of 28% is applied to glass-based paving blocks, including squares, tiles, slabs, pressed glass objects (wired or not) used in construction, glass cubes, small decorative glassware, including leaded lights, and foam glass used in blocks, plates, panels, or similar items.

What is the GST rate for marble, gravel, and crushed stone?

The GST rate applied to crushed stone, gravel, and pebble used in concrete is 5%. There are the following categories: 

Items used in the production of cement, such as limestone, limestone flux, and other calcareous materials

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Materials such as gravel, crushed or broken stone, pebbles used as aggregates in concrete, railway ballast, road metalling, shingle and flint (heated or not), macadam made of slag, dross, or similar industrial waste, tarred macadam, stone powder, and cheeping granules

Granite and marble stones The normal GST rate for marble and granite blocks is 13%. As opposed to blocks, marble and granite other than those are subject to a GST of 28%.

GST on construction stones Basalt, sandstone, porphyry, and other sandstones and construction stones are subject to a five percent GST.

Taxes on cement A standard GST rate of 28% applies to all varieties of super sulphate, slag, aluminous, and Portland cement, whether coloured or clinkered. Refractory cement, mortars, and concrete, on the other hand, will be subject to an 18% tax, while cement-bonded particle board would be subject to a 12% GST.

GST on steel and iron A single GST rate of 18% applies to all iron and steel products. It contains rolls, blocks, wires, and rods.

The tile GST rate Similar to bricks, tiles are subject to a GST ranging from 5% to 28%.

These are their different categories:

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A 5% GST is applied to all tiles, whether they are roofing or earthen. GST is charged at a rate of 28% for glazed ceramic flags, pavement, or wall tiles.

The GST rate of 28 percent applies to plastic wall coverings, rolls, and tiles, whether or not they are self-adhesive.

Bamboo floor tiles are subject to an 18% GST charge.

Panels, boards, blocks, tiles, sawdust or other debris, as well as goods of wood strengthened with cement, plaster, or another comparable mineral binder, are all subject to a GST of 28%.

Plaster is subject to a 28% tax, as are compositions made of plaster such as sheets, tiles, panels, boards, and unadorned objects.

Cement and tile made of artificial stone are subject to a 28% GST. A tax of 28% is applied to ceramic flooring blocks, infill tiles, and support tiles.

Ceramic flags, pavers, wall tiles, mosaic cubes (with or without a backing), and finishing ceramics are all subject to a 28% tax.

What are the GST rates for a building's interior furnishings?

Copper Wire The tax rate is 28% for insulated wires and cables. It is included in a section on electrical machinery and equipment, audio and video recorders and reproducers for TV, and their parts and accessories.

Varnish and Paint  

The GST rate for paints and varnishes that contain enamels, lacquers, and chemically modified natural and synthetic polymers is 28%.

In addition, there is a 28 percent tax on resin cement, glazier's putty, grafting putty, mastics, painter's filler, and surfacing materials for facades, floors, ceilings, and inside walls.

Bathroom fittings 

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Except for pipe fittings, the GST rate for bathroom furnishings such as ceramic sinks, washbasins & their pedestals, bidets, closet pans, urinals or cisterns, and similar sanitary equipment is fixed at 28%. These fittings are subject to an 18% GST rate.

Stainless steel and iron components used in sanitary ware are subject to a 28% tax.

A GST of 18% is applied to pipe fittings and tubes made of copper, plastic, nickel, aluminium, iron, or steel.

Wallpapers  

Wallpaper and wall coverings are subject to a 28% tax.

The GST rate for home furnishings ranges from 18 to 28 percent. The GST rate is 28% in the case of paintings and other comparable commodities.

Decorative Products Locks (keyed, electronic, or combination), including padlocks, are subject to an 18% tax.

Furniture, door, window, and blind-related items, as well as base metal mountings and fittings, are subject to a 28% tax.

GST rates for construction materials Construction material Sand Bituminous or oil shale and tar sands, bitumen and asphalt, natural asphaltites and asphaltic rocks Building bricks, Fossil bricks Multicellular foam glass Fly-ash bricks Prefab components Glass based paving blocks Pebble, gravel and crushed stone Marble and granite blocks Building stones Cement Iron and steel products Tiles (Earthen, roofing)

GST rate 5% 18% 5% 28% 5% 28% 28% 5% 12% 5% 28% 18% 5%

Wall tiles Bamboo floor tiles Artificial stone, cement, concrete tiles Copper wire Pipe fittings Ceramic sinks and bathroom fittings Wallpapers Locks Base metal mountings and fittings Paint and varnish

28% 18% 28% 28% 18% 28% 28% 18% 28% 28%

What are the GST rates for real estate projects?

Type of projects Affordable housing Non-affordable housing Commercial

GST rate 1% without ITC 5% without ITC 12% with ITC

The Indian tax structure underwent a radical overhaul with GST, which has both drawbacks and advantages. Although it has changed throughout the years, there is still room for development. The 2019 revisions to the GST rates for residential properties went into effect in April 2019.   

For properties that are currently being built, the GST rate is 5% without the benefit of an Input Tax Credit (ITC).

The GST rate without ITC is one percent for reasonably priced homes, defined as those with a priceless Rs 45 lakh.

Commercial real estate is subject to a 12 percent GST rate with ITC benefits.

The definition of "affordable housing" in this context has also been updated by the government to now include homes with carpet areas no larger than 60 square metres in metropolitan areas and 90 square metres in non-metropolitan cities in India.

The Confederation of Real Estate Developers Association of India (CREDAI) has recently called for developers to be granted Input Tax Credit (ITC) under the GST regime. According to the CREDAI, this would result in an almost 10% decrease in house prices. Currently, the inability of developers to take advantage of the ITC benefit has had a negative influence on construction costs and, as a result, the cost of purchasing real estate.

GST on the transportation of goods Transportation of products transporting building materials that includes the cost of fuel will now be subject to a 12 percent GST. The choice is up to the operators whether to choose a GST rate of 5% without input tax credit (ITC) or 12% with ITC. At the start of the fiscal year, there will be a choice to make.

In terms of India's tax history, the GST system is a turning point. It has undoubtedly made the tax system simpler, but moving forward will require ongoing innovation and a cooperative approach.

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