Quick answer: cement attracts 18% GST with effect from 22 September 2025. It was taxed at 28% until that date; the 28% slab was removed in the September 2025 rationalisation. For an intra-state sale the levy splits into 9% CGST and 9% SGST; an inter-state sale carries 18% IGST.
In India, the cement industry is a significant contributor to the country's economy, with a large number of cement plants operating across the country. The Goods and Services Tax (GST) rates for cement in India are crucial for businesses and individuals to understand, as it affects the pricing and profitability of cement products. In this article, we will delve into the GST rates for cement in India, including the applicable GST percentage slab, relevant HSN/SAC code, and effective date of rate.
The GST rate for cement in India is 18%, effective from 22 September 2025. Cement was taxed at 28% before that date — it was one of the items moved down when the 28% slab was removed in the September 2025 rate rationalisation. The HSN code for ordinary (Portland) cement is 2523 — sub-heading 2523 29 10 for ordinary Portland cement (dry), 2523 29 90 for other ordinary Portland cement, 2523 10 00 for cement clinkers, 2523 21 00 for white Portland cement, 2523 30 00 for aluminous cement and 2523 90 for slag and super-sulphate cement. HSN 3816 covers refractory cements, mortars and concretes, which are a different product. SAC 9954 in the earlier version of this page is the code for construction services and does not classify cement as goods. The effective date of rate for cement is July 1, 2017, which is when the GST regime came into effect in India.
| HSN Code | SAC Code | Goods/Services | GST Rate (%) | Effective Date |
|---|---|---|---|---|
| 2523 | — | Cement: Portland, aluminous, slag, super-sulphate and similar hydraulic cements, including clinkers | 18 | 22 September 2025 (28% before) |
The GST rate for cement in India is applicable to both composition and regular tax schemes. The composition scheme is a simplified tax scheme for small businesses and individuals, where the taxpayer pays a fixed percentage of their turnover as tax, without claiming input tax credit. The regular tax scheme, on the other hand, allows taxpayers to claim input tax credit, but requires them to maintain detailed records and file returns regularly.
The tax breakdown for cement under the composition and regular tax schemes is as follows:
| Tax Scheme | GST Rate (%) | Input Tax Credit | Output Tax Liability |
|---|---|---|---|
| Composition | 1 | Not applicable | 1% of turnover (2% for manufacturers under the pre-2019 scheme) |
| Regular | 18 | Applicable | 18% of the value of supply |
Use our calculator widget to calculate the GST amount for cement based on the base price:
const basePriceInput = document.getElementById('base-price'); const calculateGSTButton = document.getElementById('calculate-gst'); const gstAmountOutput = document.getElementById('gst-amount'); calculateGSTButton.addEventListener('click', () => { const basePrice = parseFloat(basePriceInput.value); const gstRate = 0.28; const gstAmount = basePrice * gstRate; gstAmountOutput.textContent = `GST amount: ₹${gstAmount.toFixed(2)}`; });Before the introduction of GST in India, the tax regime for cement was complex and involved multiple taxes, including central excise duty, value-added tax (VAT), and entry tax. The pre-GST tax regime for cement is compared with the GST regime in the table below:
| Tax Regime | Central Excise Duty (%) | VAT (%) | Entry Tax (%) | Total Tax (%) |
|---|---|---|---|---|
| Pre-GST | 12.36 | 12.5 | 2-5 | 26.86-30.36 |
| GST | - | - | - | 18 |
Here are some frequently asked questions regarding input tax credit and compliance for cement in India:
To avoid common billing mistakes and ensure compliance with GST regulations for cement in India, follow these tips:
By following these compliance tips and understanding the GST rates and regulations for cement in India, you can ensure that your business is compliant with GST laws and regulations.
28%
No exemptions, but some concessions for specific types of cement
GST increases the cost of cement products, affecting profitability
Registration, invoicing, and return filing are mandatory
Yes, input tax credit can be claimed on GST paid for cement purchases
Rate position checked against the GST Council's 56th meeting recommendations (3 September 2025) and the CBIC rate notifications 09/2025 to 17/2025-Central Tax (Rate) dated 17 September 2025, effective 22 September 2025.
Working on your own GST position? Get AI GST Assistance on WhatsApp for your invoices, and see how AI GST reconciliation matches your purchase register with GSTR-2B.
