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The government said on March 31 that the changes suggested by the 45th GST Council Meeting for construction bricks, earthen or roofing tiles, fly ash blocks, and bricks made from fossil fuels will go into effect on April 1, 2022. You will learn about GST on Brick Manufacturers in this article.
Updates for GST on Brick Manufacturers
According to the government’s announcement, brick kilns can now choose a composition plan to pay a GST of 6% without needing an input tax credit (ITC). This is an increase from the previous GST of 5%.
Businesses that don’t want to use the GST composition system will have to pay a 12% Goods and Services Tax (GST), but they can get a credit for it (Input Tax Credit).
According to the announcement, companies that make construction bricks, earthen or roofing tiles, fly ash bricks and blocks, and fossil bricks can choose a composition scheme.
Up until now, businesses that made and sold bricks had to pay a 5% GST tax and could get an input credit.
What is the HSN code of bricks?
Chapter 69: HSN Code and GST Rate for Bricks and Ceramic Goods
| Rates (%) | Products Description | HSN Codes |
| 5% | Building bricks | 6904 10 00 |
| 5% | Earthen or roofing tiles | 6905 10 00 |
| 12% | Pots, jars, and similar articles of a kind used for the conveyance and packing of goods of ceramic | 6909 |
What is the Composition Scheme under GST Registration ?
Under GST Registration, businesses with a turnover of less than 1.5 Crores can use a composition scheme. To figure out turnover for the composition system, the sales of all businesses with the same PAN number must be added up.
The composite scheme is better than the standard GST Return Filing in two ways: you have to do less paperwork and follow the rules, and your tax burden is lower.
Can a dealer in compositions produce tax invoices?
A composition dealer must give out a Bill of Supply. You won’t be able to get a tax bill from them. This is because the tax is supposed to be paid by the dealer. A composition dealer can’t get the GST back from customers.
Is it true that composition dealers may sell a product for less than other dealers?
Yes. On the bill of supply, dealers who sell mixtures do not have to charge GST. Because of this, the final customer pays less than usual.
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Tag : GST Filing, GST Registration, TDS Filing