GST has reshaped taxation in India since its introduction. One sector that has seen significant changes under the GST regime is the brick industry — especially with respect to tax rates, compliance, and operational costs. In this detailed guide, we’ll break down the latest GST on bricks in 2026, including applicable GST rates, relevant HSN codes, recent updates, and what these changes mean for manufacturers, distributors, and suppliers.
What is GST on Bricks?
Goods and Services Tax (GST) is a unified tax system that replaced multiple indirect taxes like VAT, Excise, and Service Tax in India. The GST on bricks determines how much tax manufacturers and sellers must charge for different types of bricks used in construction.
Under GST, bricks fall under specific HSN (Harmonized System of Nomenclature) codes, which determine the exact tax rate that applies.
Latest GST Rates on Bricks (2026)
Below is a clear table showing the GST rate on bricks in 2026 along with relevant HSN codes:
| Type of Brick | HSN Code | GST Rate (With ITC) | GST Rate (Without ITC) |
|---|---|---|---|
| Standard Clay Bricks | 6901 | 12% | 6% |
| Fly Ash Bricks | 6901 | 12% | 6% |
| Refractory Bricks | 6902 | 18% | 18% |
| Other Speciality Bricks | 6901 / 6902 | 12% / 18% | 6% / 18% |
Note: The HSN code for most common bricks (clay and fly ash) is 6901, while refractory bricks are covered under 6902. These codes help in categorizing products for taxation.
Key Updates for GST on Bricks (2026)
GST Rate Revision
GST on standard bricks, including fly ash bricks, has been set at 12% with Input Tax Credit (ITC).
If suppliers choose not to avail ITC, the applicable rate is 6%.
Refractory bricks attract 18% GST, regardless of ITC.
Input Tax Credit (ITC) Options
Manufacturers and suppliers now have a choice:
12% GST with ITC — allows claiming tax credits on inputs.
6% GST without ITC — no tax credits available.
This flexibility helps businesses optimize their tax strategy based on whether they need credit on raw materials or not.
Composition Scheme Changes
Previously, brick businesses with a turnover up to ₹1.5 crore could opt for a lower GST rate via the composition scheme. However:
The traditional composition scheme is no longer available for brick manufacturers.
A special composition option allows paying 6% GST without ITC, but this does not offer full composition benefits like earlier schemes.
GST Registration Threshold
The GST registration threshold for brick suppliers has been reduced from ₹40 lakh to ₹20 lakh.
Any business with turnover exceeding ₹20 lakh must register for GST, increasing compliance requirements.
How These GST Changes Affect Brick Manufacturers
Here’s how the revised GST structure affects brick industry stakeholders:
- Increased Tax Costs:- The move from a 5% GST rate (earlier) to 12% with ITC increases the overall tax burden — especially for large volume suppliers.
- Impact on Pricing:- Manufacturers may pass the increased tax burden to end customers, potentially resulting in higher brick prices in construction.
- Compliance Requirements:- Reducing the threshold for GST registration means more small businesses now need to maintain records, file returns, and comply with GST norms.
- Strategic Choice Between ITC and Non-ITC:- Brick suppliers will need to decide whether claiming ITC (12% with credit) is more beneficial than paying a flat 6% without ITC — based on their raw material costs and credit flow.
How to Choose Between GST With ITC vs Without ITC
| Scenario | Best Option |
|---|---|
| High raw material costs (eligible ITC) | 12% with ITC |
| Simplified compliance, no credit needed | 6% without ITC |
| Small supplier with turnover near threshold | 6% without ITC |
| Supplier buying raw materials from unregistered sellers | 12% with ITC |
FAQ's on GST Rate on Bricks
1 What is the GST rate on bricks in 2026?
The GST rate on bricks in 2026 is 12% with Input Tax Credit (ITC). If a supplier opts not to claim ITC, bricks are taxed at 6% GST without ITC. Refractory bricks attract 18% GST.
2 What is the HSN code for bricks under GST?
The HSN code for bricks used in construction, such as clay bricks and fly ash bricks, is HSN 6901. Special types like refractory bricks fall under HSN 6902.
3 What is the GST rate on red bricks in India?
The GST rate on red bricks (clay bricks) in India is 12% with ITC or 6% without ITC, depending on the option chosen by the supplier.
4 What is the GST rate on fly ash bricks?
The GST rate on fly ash bricks is 12% with ITC or 6% without ITC. Fly ash bricks are covered under HSN code 6901.
5 Is GST registration mandatory for brick manufacturers?
Yes. GST registration for brick manufacturers is mandatory if the annual turnover exceeds ₹20 lakh. Earlier the threshold was ₹40 lakh, but it has now been reduced.
6 Can brick manufacturers opt for the composition scheme?
Traditional composition scheme is not available for brick manufacturers. However, they can opt for a special scheme at 6% GST without ITC, as per current GST rules.
7 Can Input Tax Credit (ITC) be claimed on bricks?
Yes. Brick manufacturers and suppliers can claim ITC only if they charge 12% GST. If they opt for 6% GST, ITC cannot be claimed.
8 Why was the GST rate on bricks increased?
The GST rate on bricks was revised to reduce tax leakage, bring uniformity, and improve compliance in the brick manufacturing sector.
9 What is the GST rate on refractory bricks?
The GST rate on refractory bricks is 18%, and ITC is available at this rate.
10 How do GST changes affect brick prices?
Higher GST rates and reduced composition benefits may increase compliance costs, which can raise brick prices for end consumers in the construction industry.
