HSN Code 6901 and GST Rates for Bricks, Blocks, and Tiles

The taxation processes of different goods and services in India have been made easier with the introduction of Goods and Services Tax (GST). Construction materials like bricks, tiles, and blocks have been incorporated into the list of taxed goods under GST. These materials are important to the Building and construction real estate and their taxation structure under GST has specific HSN codes assigned to them. One of the important codes in the range is HSN Code 6901 which pertains to ceramic goods such as tiles, bricks, blocks, and so on. This article highlights details of HSN code 6901 and the applicable GST rates as well as their effect on the construction industry.

You Should Also Read: GST on Under Construction Property: A Complete Guide

Understanding HSN Code 6901

HSN codes are the globally accepted systems for classifying goods and services with the aim to facilitate international trade. HSN code 6901 relates to ceramic products that encompass bricks, blocks, and tiles as construction materials. These products are foundational to the improvement of infrastructure on both residential and commercial fronts. It is important for businesses that specialize in construction goods to be aware of the applicable HSN codes so that the accurate GST rates are charged. The HSN code 6901 is subdivided into solid blocks, bricks, tiles, other ceramic goods and products. Each subcategory comes with a dedicated GST rate that businesses have to comply with on their invoices as well as for claiming input tax credit.

Bricks GST Rate and HSN Code

Bricks are regarded as vital in the construction process in India. Hence, these are covered under HSN code 6901. Subheading 6901.10 deals with bricks and blocks of ceramics, which is a type of building material like walls and parts of buildings’ structures and foundations.

With regards to bricks and other ceramic goods under HSN 6901, the GST rate is almost always 18%, which is what is imposed on the majority of ceramic items, including the bricks. It is meant to support the cross-border trade of the Indian construction industry.

Tiles HSN Code and GST Rate

These are also included under HSN code 6901. Ceramic, vitrified, and porcelain tiles are extensively used as flooring materials, wall coverings, and even roofs in house, office or factory construction. Each type of tile has its specific use case. Here, tiles are categorized according to purpose and material type under HSN Code 6901. A case to note is that of ceramic tiles, which are sub-classified under this HSN code, and their corresponding GST rate is 18%. This standard rate covers the ceramic goods that are utilized within the construction industry. Keep in mind that other types of tiles made from varying materials might attract a different rate of tax depending on how they fall within the larger brackets of HSN Code 6901. Lastly, it is worth noting that there is a wide variation in GST on tiles ranging between 12 and 18 percent with the ceramic and porcelain tiles usually attracting the 18 percent tax.

Impact of GST on the Construction Sector

The effects of GST have been felt deeply within the construction industry, especially on the taxation of bricks, blocks, and tiles. Before the introduction of GST, construction materials were taxed through multi-level state and central taxes, which were highly disorderly and inaccurate. After GST, it has become easier. Now, companies can utilize the input tax credit on construction expenses, which minimizes the costs incurred.

The standard products under GST for bricks, blocks, and tiles classify under HSN code 6901, which helps everyone in the country to determine the tax to be paid. There have been new difficulties arising after the implementation of GST, especially for smaller firms and contract workers who often do not have adequate information about the tax rates or the input tax credit process.

You Should Also Read: The Impact of GST on Works Contracts

Overview of GST Rates for Bricks, Blocks, and Tiles

To better understand GST in relevant sectors, the below table summarizes bricks, blocks, tiles in terms of their specific HSN codes and their associated GST rates.

HSN Code	Description	Rate (%)
6901	Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tripolite Or Diatomite) Or Of Similar Siliceous Earths	18
690100	Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tripolite Or Diatomite) Or Of Similar Siliceous Earths	18
69010010	Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tripolite Or Diatomite) Or Of Similar Siliceous Earths - Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tr	5
69010020	Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tripolite Or Diatomite) Or Of Similar Siliceous Earths - Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tr	18
69010030	Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tripolite Or Diatomite) Or Of Similar Siliceous Earths - Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tr	18
69010090	Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tripolite Or Diatomite) Or Of Similar Siliceous Earths - Bricks, Blocks, Tiles And Other Ceramic Goods Of Siliceous Fossil Meals (For Example, Kieselguhr, Tr	18

This concentration of HSN Code 6901 is maintained in the GST rates applied to the majority of bricks, blocks, and tiles. The uses of certain solid blocks and types of tiles are highly relevant within the construction industry of India, which explains the set 18% GST rate on them.

Conclusion

Bricks, blocks and tiles are provided under the HSN Code 6901 which consequently makes the GST treatment more favorable for the construction industry. Because most ceramics and solid block HSN Code products are charged a GST of 18 percent, those that deal with the construction materials do not face major issues with taxation compliance. As a result, the application of HSN Code 6901 has led to a simplified system of taxation that is beneficial to both the builders and the consumers of the construction industry. With correct HSN codes and GST rates, the real estate and construction businesses in India can be more productive and efficient.

More information regarding HSN code 6901 and its effect in bricks, blocks and tiles can be found in the Swipe Blogs resource.