GST Impact on Construction Materials | ConstroBazaar

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What is GST?

• GST is single unified indirect tax system it
  unifies India as one marketplace.
• GST replaces VAT, Central Sales Tax, Service Tax,
  Purchase Tax, Excise Duty, CAD, SAD, Octroi,
  Entry Tax, Luxury Tax, Cess etc.
• As GST is now applicable for every service
  product.
• It impacted construction industry and its
  products thoroughly to bring more transparency.
• Lets see the effect on the construction industry
  and its products

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Prices Fall after GST

• Production costs are reduced as a result of lower
  tax rate of 5 at the essential inputs like coal
  and iron ore.
• Similarly, the input availability of raw material
  purchase reduces the tax further.
• Additionally, logistics expenses may even become
  less owing to the removal of entry taxes ensuring
  quicker movement of goods.

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Prices Rise after GST

• Smaller unorganized producers and dealers had the
  gain of certain tax exemption, but these
  exemptions will discontinue and all organizations
  are ought to levy uniform taxes on comparable
  products after GST implementation.
• This could bring about the upward push in
  entering charges for all shoppers who used to
  purchase items from such producers.

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Table below shows the impact in percentage of GST
on construction material
5 12 18 28
Sand River, Crush, M Sand AAC Block Cement Blocks Cement (All Grades)
Red Bricks Fly Ash Bricks Steel Products Wall Putty
Stone Sand Lime Iron Materials Glass
Shahabad Some Aluminum Products Tiles
Crushed Stone used in Concrete     Sanitary Fittings
Aggregates
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GST on Sand, Stone

• All types of natural sands (M Sand, River Sand,
  Crush Sand etc.) and Crushed Stones have a fixed
  amount of 5 GST.
• Different stones utilized in construction like
  porphyry, basalt, sandstone and different huge or
  building stone, both in blocks and slabs attracts
  GST at 5.

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GST on Cement

• All kind of cement including grey cement, white
  cement, portland cement, aluminous cement, slag
  cement, super sulphate cement etc. attract 28
  GST.

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GST on Iron Steel

• All products of Iron Steel like iron blocks,
  wires, rolls, rods etc. used in construction is
  having 18 GST rate.

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GST on Bricks

• As bricks used for the construction of a building
  is made of different raw materials, also has
  different GST rates.
• Cement bricks, glass-based paving blocks attract
  28 of GST rate.
• Refractory blocks, bricks similar construction
  related ceramic goods have GST rate of 18.
• 12 GST rate sets for fly ash bricks and
  sand-lime bricks.
• Bricks of fossil meals and similar siliceous have
  5 of GST rate.

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GST on Tiles

• Likewise, bricks, building tiles also made
  from different materials have different GST
  rates.
• Tiles used for roofing are having 5 rate of GST.
• Ceramic tiles are having 18 rate of GST.
• Marble, granite tiles and cement tiles for mosaic
  attract 28 of GST rate.

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