CBIC Notifies 12% GST on Construction Materials including Bricks and Tiles

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 14/2025-Central Tax (Rate), introducing a revised 12% GST on construction materials including bricks and tiles. This new tax rate will come into effect from 22nd September 2025, aiming to simplify and standardize the GST structure for key building materials across the country.

Under the notification, the GST will be levied at six percent as Central GST (CGST) and an equivalent six percent as State or Union Territory GST (SGST/UTGST) for intra-state transactions, resulting in a total of 12 percent. For inter-state supplies, the same materials will attract 12 percent Integrated GST (IGST). The materials affected by this change include fly ash bricks, bricks made from fossil meals or similar siliceous earths, standard building bricks, as well as earthen and roofing tiles. These items are widely used in residential and commercial construction projects and constitute essential building components.

The notification comes in line with decisions made during the 56th GST Council meeting held earlier this month, where the council emphasized the need to rationalize GST on commonly used construction materials. By introducing a uniform 12 percent tax rate, the government aims to reduce discrepancies between states, simplify compliance for manufacturers and suppliers, and provide greater transparency for buyers.

For manufacturers and suppliers, the new GST rate is expected to standardize tax collection and reporting, reducing confusion arising from differing state-level interpretations of GST. Builders and contractors may also benefit from easier accounting and pricing for construction projects, as a consistent tax rate ensures predictability in material costs. Consumers may see a slight change in overall construction expenses depending on how suppliers adjust their prices, but the clarity in taxation could lead to a more transparent and fair cost structure.

Stakeholders are advised to familiarize themselves with the notification and consult tax professionals to ensure proper implementation. All businesses involved in the production, sale, or use of these construction materials should update their billing, invoicing, and accounting systems to reflect the revised 12 percent GST before the effective date to avoid any compliance issues.

This move by the CBIC marks a significant step toward streamlining taxation in the construction sector. By establishing a uniform GST rate on bricks and tiles, the government is not only simplifying tax procedures but also promoting transparency in the pricing of essential construction materials. As India’s construction industry continues to expand, such regulatory updates are expected to contribute to smoother operations, improved compliance, and a more predictable business environment for manufacturers, builders, and consumers alike.