GST Rates On Construction Materials in 2025: GST On Cement, Sand And Bricks

Revised GST Rates 2025: When India introduced the Goods and Services Tax (GST), the stated ambition was simple: stop drowning people in a maze of indirect taxes and bring everything under one umbrella. Before GST, construction materials were spread across multiple tax brackets, confusing even seasoned contractors. In 2025, the government has narrowed the structure down, keeping most materials under just two slabs 5 per cent and 18 per cent. The system looks more manageable on paper, though anyone who has dealt with suppliers knows the ground reality is never as smooth as the government’s press notes. Still, the revised slabs have made it easier for builders, homeowners, and small contractors to budget without pulling their hair out over conflicting rules.

GST on construction materials: 2025 rate chart

Here’s the current GST table for construction materials:

These rates are official as of now, but they can shift overnight with a fresh government notification. Contractors who learned this the hard way will always advise never to lock your project budget assuming today’s rate will remain tomorrow’s truth.

What is the GST rate on sand and bricks in 2024?

Natural sand, used everywhere from plastering to concrete, has stayed steady at 5 per cent. This applies to coloured and non-coloured sand, provided it doesn’t fall under “metal-bearing” categories. There are exceptions, though. Bituminous sand, asphalt rocks, or oil shales are thrown into the higher 18 per cent bracket. It’s not hard to guess why those have different commercial values and industrial uses, so the taxman won’t let them off cheaply.

On the brick side, all common types clay, fly ash, refractory, sand lime sit under 5 per cent. That’s a relief for small housing projects where bricks still account for a bulk of the structure. Anyone sourcing directly from kilns knows bricks are a price-sensitive material, and even a small tax change ripples down to the final bill.

GST on fly ash bricks

Fly ash bricks have become popular not just because they cost roughly 20 per cent less to manufacture than clay bricks, but also because they cut down on mercury pollution from coal plants. It’s a sustainability angle that the government has been pushing, and keeping the GST at 5 per cent supports that narrative. In real terms, this means builders can adopt them without worrying about tax inflation eating up the savings.

GST on prefabricated components

Prefabricated parts, cement blocks, artificial stone, and reinforced slabs are treated differently. The government slaps them with 18 per cent GST. For large developers who rely on prefabrication to cut down construction time, this adds a noticeable cost layer. It’s almost ironic: prefabrication is efficient and modern, yet the tax discourages its wider use.

GST on paver blocks

Glass-based paving materials attract 12 per cent. This includes tiles, squares, slabs, pressed glass blocks, and decorative cubes. It sits awkwardly between the lighter 5 per cent and heavier 18 per cent brackets. For a mid-range product, it means buyers neither get full relief nor pay the highest penalty.

GST on building stones, gravel, granite, and marble in 2025

Building stones like basalt, sandstone, or porphyry are steady at 5 per cent. Pebbles, gravel, and crushed stone, vital for concrete mixes and railway ballast, also stay at 5 per cent. This is one of the rare areas where the government cut rates meaningfully: marble and travertine blocks once stood at 12 per cent, now brought down to 5 per cent.

For anyone sourcing bulk raw stone for flooring or cladding, that 7 per cent drop is significant. It means large-scale housing projects can shave off lakhs from their stone supply bills. The fine print, however, is messy. Special articles like limestone flux or industrial slag often have separate classifications. Contractors are forced to double-check HSN codes every single time.

GST on cement, iron, and steel in 2025

Cement remains the biggest burden. Once taxed at 28 per cent, it has been trimmed to 18 per cent. It sounds like relief, but cement prices across India have risen by nearly 8 per cent in the last year because of logistics costs, nullifying most of the tax benefit. For small contractors and individual house builders, cement remains the single largest expense they complain about.

Here’s the cement-specific rate table for 2025:

It’s worth noticing the odd exception: cement-bonded particle boards taxed at 5 per cent.

Iron and steel? Flat 18 per cent for all products: rods, wires, blocks, and rolls. No exceptions, no mercy.

GST on Murum Soil

Murum soil, often overlooked, is essential for plinth filling, backfilling, and road bases. It’s durable, stable, and doesn’t decay like organic soil. The government taxes it at 18 per cent, placing it in the same bracket as lime powder and refractory castables. Contractors grumble because, unlike luxury fittings, Murum is basic groundwork material. Yet the taxman treats it as a premium.

GST rates on interior furnishing materials in 2025

Construction doesn’t end with walls and roofs. Interior costs can swallow nearly half the budget, and GST applies heavily here.

Tiles and wood

All major tile types sit at 18 per cent glazed ceramic, artificial stone, cement tiles, plaster panels, mosaic cubes, ceramic flooring blocks. No leniency. Wood, however, gets partial relief: bamboo flooring and veneering sheets attract just 5 per cent. This cut signals a push for eco-friendly alternatives, though bamboo remains niche in most Indian markets.

Copper wire and electrical fittings

Insulated wires and cables are taxed at 18 per cent. Same goes for electrical machinery, recorders, or any component tied to wiring. A higher bracket for something so basic raises eyebrows, but the government hasn’t budged.

Wallpapers, paint, and varnish

Wallpapers taxed ta 18 per cent. Paints and varnishes, whether enamel or lacquer, also 18 per cent. This includes resins, glazier’s putty, and fillers. The flat rate makes calculating easier, but it stings when fitting out interiors.

Bathroom fittings and sanitaryware

Sanitary fittings, sinks, urinals, closet pans, and cisterns sit at 18 per cent. Pipe fittings of copper, nickel, aluminium, and steel are all 18 per cent. Plastic pipes, oddly, fall to 5 per cent. This inconsistency forces buyers to shop strategically, sometimes choosing cheaper plastic just to dodge tax.

GST rates on construction services

Materials aside, services form the other half of the cost. Effective from 22 September 2025, contractor and labour services carry 18 per cent GST. This applies broadly labour supply, works contracts, general construction services.

What is a works contract?

Legally, it’s a composite supply that combines goods and services like building, fabricating, or repairing immovable property. GST treats it differently from a purchase of pure goods.

What is a labour contract?

A simpler agreement, it sets the terms between contractor and workers covering wages, conditions, and scope of work. While less complex than works contracts, GST still applies when billed as part of the project.

The revised GST rates in 2025 have undeniably simplified the structure, collapsing many categories into 5 per cent and 18 per cent. Yet, simplification doesn’t mean relief. Cement remains heavy, iron and steel offer no escape, and interiors are consistently taxed at 18 per cent. Only a few categories of sand, bricks, stones, and bamboo give breathing room. For anyone budgeting an under-construction property, the advice remains the same: consult a professional, double-check HSN codes, and never assume today’s rate will survive the next government notification.