GST on Cement in India (2026): 18% After GST 2.0
One of GST 2.0's headline cuts: cement fell from 28% to 18% from September 2025, lowering construction costs. Here's the current rate, HSN code, and how input tax credit works for builders, contractors and hardware traders.
Part of: The Complete GST Guide for Small Business in India (2026)
Cement was long stuck at the top 28% slab. The GST 2.0 reforms of 22 September 2025 cut it to 18% — a meaningful reduction in construction and infrastructure costs. Here's the current picture for builders, contractors and hardware traders.
Quick answer: GST on cement is 18% (HSN 2523), reduced from 28% under GST 2.0.
Construction-material GST at a glance
| Material | GST rate | HSN code |
|---|---|---|
| Cement (all types) | 18% | 2523 |
| Steel / TMT bars | 18% | 7213 / 7214 |
| Bricks (subject to type/scheme) | 5%–12% | 6901 / 6904 |
| Sand / aggregates | 5% | 2505 / 2517 |
| Paint | 18% | 3208 / 3209 |
Input tax credit on cement
A GST-registered contractor or trader can claim ITC on cement bought for taxable works-contract or resale. But ITC is restricted for construction of immovable property on one's own account (Section 17(5)(c)/(d)) — so a developer building for sale, or a business constructing its own building, often cannot claim it. The position depends on your exact activity; confirm with your CA.
FAQs
When did cement GST drop to 18%?
From 22 September 2025, as part of the GST 2.0 rate rationalisation that moved most 28% items down to 18%.
General information only, not tax advice; rates and ITC rules can change. Confirm the current rate, HSN and ITC eligibility for your activity on CBIC notifications or with your CA. Last reviewed: September 2026.
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