The government on March 31 ,2022 notified the GST rates that would be applicable from 1st April ,2022 .Those businesses who do not wish to opt for the composition scheme would be subject to 12 per cent GST with ITC.
Amendment related to person engaged in making supply of the goods as per below HSN code:
- Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks (6815)
- Bricks of fossil meals or similar siliceous earths (69010010)
- Building bricks (69041000)
- Earthen or roofing tiles (690510 00)
| Notification No. | Description |
| 01/2022 Central Tax (Rate)
|
Seeks to amend GST rates of bricks and tiles from 5% to 12%. |
| 02/2022 Central Tax (Rate) | Seeks to bring special composition scheme for bricks & tiles to be taxed at 6% GST without ITC |
| 03/2022 Central Tax | Any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees. There are few exceptions to that. Now, Turnover limit of Rs. forty lakh will not be applicable to persons engaged in making supplies of the good as above. |
|
04/2022-Central Tax |
Registered person shall not be eligible to opt for composition levy under sub-section (1) of section 10 |
So far, manufacturing and trading of bricks were chargeable at 5 % GST, and businesses were allowed to claim credit on inputs. Now will attract 6% GST Without claiming input tax credit and 12% if wants to claim input tax credit. Developers of residential housing are not permitted to avail any ITC. Thereby such sharp increase in the tax rate for bricks would also lead to cascading effect in the entire residential housing sector. Summary of rate chart is given in the below table:
| HSN | Description | Old Rate (With ITC) | New Rate (With ITC) | New Rate (Without ITC) |
| 6815 | Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks |
5% |
12% |
6% |
| 69010010 | Bricks of fossil meals or similar siliceous earths | |||
| 69041000 | Building bricks | |||
| 690510 00 | Earthen or roofing tiles |
Click to download Notifications:
Disclaimer: This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
Published on: April 1, 2022