GST for bricks in India

The Goods and Services Tax (GST) rollout in India has brought about significant changes across various sectors, particularly affecting the brick manufacturing industry. Since bricks form the backbone of construction work, understanding the GST rate for bricks is crucial for brick manufacturers, traders, and buyers.

The article examines the current brick GST rate, sector-specific changes, previous tax structures, manufacturer impact analysis, brick-type GST classifications with HSN codes, and broader industry effects.

GST rate on bricks

As of September 22, 2025, with the introduction of GST 2.0, the tax rates for the brick industry have undergone substantial changes. There has been no change in GST slab structure; the standard slabs of 5%, 12%, 18% and 28% continue to apply. a special 40% for luxury and sin products.

All brick varieties, barring a few—such as building bricks, paving bricks, and sand lime bricks—still enjoy a GST rate of 12%. However, fly ash bricks, which have become the industry standard, Fly ash bricks, aggregates and blocks falling under HSN 6815 attract 12% GST with effect from 22 September 2025, as notified under CBIC Notification No. 14/2025‑Central Tax (Rate). This brick GST rate applies to products under the HSN (Harmonised System of Nomenclature) code 6904.

Current GST changes impacting the brick industry

Recent years have witnessed several shifts in the GST rate for bricks. The Gujarat High Court clarified that the 90% fly ash content condition is not applicable to fly ash bricks or blocks. However, the applicable GST rate continues to be governed by statutory notifications issued under the CGST Act. This ruling brought welcome relief to manufacturers producing bricks with lower fly ash content.

The 55th GST Council meeting, held in December 2024, confirmed a 12% GST rate for autoclaved aerated concrete (AAC) blocks containing over 50% fly ash. This clarification helped resolve tax treatment questions for AAC blocks in the marketplace.

The GST Council recommendations implemented from 22 September 2025 standardised the GST rate on fly ash bricks at 12% through CBIC Notification No. 14/2025 on 3 September 2025, proposed drastic changes that took effect from 22 September 2025. The most significant change for the brick sector was the lowering of GST on fly ash bricks from 12% to 5%, as part of the government's thrust towards sustainable building materials.

This shift brings significant cost relief to the construction industry, as fly ash bricks have emerged as the preferred option over conventional clay bricks. GST on cement continues to be levied at 28%, and no rate reduction has been notified by the GST Council. generating a cumulative beneficial effect on construction economics.

Previous GST rate structure for brick manufacturing

The earlier framework had a different GST rate for bricks that shaped industry operations.

• Building bricks and sand lime bricks were subject to a 5% GST. This rate was applicable before April 2022.
• Fly ash bricks were taxed at 12%. This rate prevailed from April 2022 to September 2025.
• Paving bricks also attracted a 5% GST. This rate was applicable before April 2022.
• Refractory bricks continued to be taxed at an 18% rate.

Comparison of GST changes for brick manufacturers

The GST landscape has shifted significantly for brick manufacturers, particularly in terms of registration thresholds and eligibility for the composition scheme. Previously, GST registration became mandatory only for annual turnovers above ₹40 lakhs. Notification No. 03/2022-Central Tax lowered this to ₹20 lakhs.

Earlier, brick manufacturers turning over up to ₹1.5 crores yearly could choose the Composition Scheme. This option no longer exists. Instead, Notification No. 02/2022-Central Tax introduces a unique scheme that allows for a 6% GST payment without input tax credit (ITC).

For manufacturers outside the Composition Scheme, the GST rate for bricks has increased from 5% with input tax credit (ITC) to 12% with ITC, as per Notification No. 02/2022-Integrated Tax (Rate). But with GST 2.0 introduced in September 2025, manufacturers of fly ash bricks now enjoy a lower 5% GST with ITC, thus enjoying huge cost benefits.

Following the rollout of GST 2.0, the tax scenario has again changed. Though the conditions of the composition scheme are the same as per the 2022 notifications, the slashing of the GST rate on fly ash bricks from 12% to 5% offers relief to manufacturers. Manufacturers opting for the special composition scheme can now avail themselves of both the 6% GST rate without ITC as well as the reduced input price for fly ash bricks.

GST rates for different types of bricks with HSN Code

A proper understanding of the GST rate for bricks enables manufacturers to price products accurately and fulfil their tax obligations effectively. Here's a detailed breakdown of current GST rates for bricks with corresponding HSN codes:

The GST rate on bricks depends on the use of the type of brick. In GST 2.0, eco-friendly Fly ash bricks / blocks / aggregates (HSN 6815) – GST rate 12%, which is much less than regular building bricks at 12%, boosting the practice of sustainable building.

Also Read - Changes in GST Rates: How Does It Impact You

Impact of GST on the brick industry

The latest GST rate for bricks, effective from 1st April 2022 and most recently with GST 2.0 from September 22, 2025, has brought notable shifts in the sector's tax structure. The increase to 12% GST with input tax credit (ITC) and 6% without ITC means brick suppliers face higher tax burdens compared to the previous 5% rate with ITC. However​‍​‌‍​‍‌​‍, the producers of the fly ash bricks are largely advantaged by the 5% GST rate under the GST 2.0.

Composition Scheme alterations have also impacted operations. Previously, suppliers with a yearly turnover up to ₹1.5 crores could opt for a composition GST rate for bricks of 1% without input tax credit or 5% with input tax credit. Now, they must use the unique composition scheme at 6% GST without ITC.

The availability of input tax credit influences cost management and pricing decisions. Now, vendors of fly ash brick can take advantage of a 5% GST rate along with the input tax credit. In the case of other types of ​‍​‌‍​‍‌​‍​‌‍​‍‌bricks, suppliers now have the option to choose between 12% GST with input tax credit or 6% GST without input tax credit. Choosing 6% means foregoing input tax claims, which could potentially affect total costs.

The reduction of the registration threshold from ₹40 lakhs to ₹20 lakhs means that more suppliers will need to obtain regular GST registration, thereby increasing their compliance workload.

Updated GST rates and changes to the composition scheme impact compliance costs and business strategies. Suppliers must adapt to new tax structures and carefully manage their liabilities, which may lead to higher end-user costs. The brick industry may need to adjust market approaches and operations accordingly.

GST 2.0 Impact (September 2025):

The launch of GST 2.0 from September 22, 2025, with its streamlined two-slab framework (5% and 18% as base slabs) has caused relief in the construction industry. For suppliers and manufacturers of bricks:

• The fly ash brick manufacturers are helped by the lower 5% GST rate, thus making environment-friendly bricks more affordable and competitive.
• Construction expenses will fall by about 3-5% as a result of the reduced GST on major materials such as fly ash bricks and cement.
• The easier tax framework lowers compliance complexity and classification controversy.
• The transition to largely fly ash bricks in the market, which is now taxed at 5%, gives a core cost benefit to the building sector.
• Elimination of the 28% slab in GST 2.0 is advantageous to the larger construction ecosystem.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ changes in GST rates as well as the modifications in the composition scheme have an effect on the compliance costs and the business strategies. To the new tax structures, suppliers have to get accustomed, and they should keep a close check on their liabilities.

While the entire process will save consumers money, the reduction of fly ash brick prices is seen as a crucial step towards making housing affordable. The bricks sector will be able to change its market strategies and practices, if ​‍​‌‍​‍‌​‍​‌‍​‍‌necessary.

GST payment options

Here are the payment options for retail and corporate clients through various channels, facilitated by financial institutions like Axis Bank:

• Internet banking: The bank's online platform enables smooth GST payments. Log in to your account, locate the GST payment section, and follow the straightforward steps to complete the payment.
• NEFT/RTGS: For electronic transfer preferences, use NEFT (National Electronic Funds Transfer) or RTGS (Real-Time Gross Settlement) through Axis Bank. Start payment from your account with the required GST details for the government account transfer.
• Over-the-counter: Traditional payment options remain at all Axis Bank branches nationwide. Visit any branch, complete the GST challan, and make the payment via cash, cheque or demand draft.

Axis Bank GST payment services

Axis Bank provides straightforward GST payment options. Some key aspects of GST Services include:

• Online payments via its Internet Banking portal.
• Multi-level authentication for payment security.
• NEFT/RTGS payments are accepted from any bank account.
• Branch counter facility for GST payments.
• Dedicated GST payment support team.
• Direct GST portal integration for smooth processing.

By offering multiple payment methods, Axis Bank enables businesses and individuals to meet their GST obligations efficiently, saving them valuable time. Simply go to the GST Payment Solutions page and streamline your tax compliance.

Conclusion

The GST on bricks has undergone substantial changes recently, affecting everyone from manufacturers to end-users. With GST 2.0 coming into effect from September 22, 2025, fly ash bricks now face a lower 5% GST rate, whereas most conventional bricks remain at 12%.

The streamlined two-slab GST framework under GST 2.0 (18% and 5% as primary slabs) has lessened compliance complexity as well as made environment-friendly building materials more affordable. Industry participants must stay updated on developments regarding revised rates, new composition options, and altered registration limits. Changes to registration thresholds, composition scheme eligibility and input tax credit access have shaped how the industry responds to current tax rules.

As brick manufacturers continue working within the GST framework, they must adjust their strategies while maintaining compliance. The GST 2.0 reforms are a welcome change for the sector, with fly ash brick makers and the overall building industry reaping benefits through lower costs. Understanding GST on bricks enables businesses to make informed decisions, handle tax obligations effectively, and contribute to the growth of the construction sector across India.

Frequently Asked Questions

What are the HSN codes of refractory and building bricks?

HSN code 6902 covers refractory bricks, while building bricks fall under HSN code 6810.

What is the GST for wire-cut bricks?

Wire-cut bricks, classified as building bricks under the HSN code 6810, are subject to a 12% GST rate on bricks under the current rules.

Who can opt for the composition scheme as a registered individual?

Recent notifications have removed the composition scheme for brick manufacturers. However, registered individuals may use a special scheme, subject to specific conditions, and pay a 6% GST rate on bricks without input tax credit (ITC).

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article

Tax and GST regulations are subject to change. The information in this article is based on applicable laws, rules, notifications, and interpretations in force as on the date of publication and may change due to amendments, judicial decisions, or regulatory updates.