GST on Cement Is Now 18%: What Buyers and Builders Should Know
The GST rate on cement dropped from 28% to 18% in September 2025. Here is what that means for your quotations, invoices and project budgets.
Cement falls under HSN 2523 and attracts 18% GST from 22 September 2025, down from 28%. On a bag with a pre-tax price of ₹350, GST is now about ₹63 instead of ₹98. Freight and unloading may carry GST at their own applicable rates and should appear as separate lines. Whether you can claim input tax credit depends on your business and the use of the cement; construction of immovable property has specific restrictions, so check with your tax adviser.
What changed?
In the GST rate rationalisation that took effect on 22 September 2025, cement was moved from the 28% slab to the 18% slab. Cement is classified under HSN 2523 (Portland cement, aluminous cement, slag cement and similar hydraulic cements).
What it means per bag (illustration)
| Pre-tax price per bag | GST at 28% (old) | GST at 18% (new) | Saving per bag |
|---|---|---|---|
| ₹300 | ₹84 | ₹54 | ₹30 |
| ₹350 | ₹98 | ₹63 | ₹35 |
| ₹400 | ₹112 | ₹72 | ₹40 |
The pre-tax prices above are hypothetical examples. The saving reaches you only if the pre-tax price is unchanged — which is why you should always see the pre-tax price and GST as separate lines in a quotation.
How GST appears on a cement quotation
A transparent quotation shows, per bag or per tonne:
- Cement price (pre-tax)
- Freight to your site
- Unloading
- GST on each line at its applicable rate
- Total landed price
Freight and other services can carry GST at their own applicable rates, which may differ from the cement rate. Read how to read a cement quotation.
Invoices: what to check
- Seller's legal name and GSTIN
- Your name, address and GSTIN (if registered)
- HSN 2523 for cement and correct rate
- Place of supply and correct tax type (CGST + SGST for intra-state, IGST for inter-state)
- Quantity, rate and taxable value per line
- Invoice number and date
Pay only the company named on the invoice, through official channels. See safe payments.
Can I claim input tax credit?
It depends on who you are and how the cement is used. Under GST law, input tax credit on goods and services used for construction of immovable property is restricted in several situations (for example, construction on your own account), while other businesses may be eligible. The rules are specific, so confirm with your chartered accountant or tax adviser before relying on ITC in your budget.
Does the GST cut apply to other building materials?
Each material has its own HSN code and rate. Do not assume the cement rate applies to steel, blocks, bricks, sand or chemicals — check each line on your quotation and invoice.
Key takeaways
- Cement (HSN 2523): 18% GST from 22 September 2025, down from 28%.
- Insist on pre-tax price and GST shown separately.
- Freight and unloading may be taxed at their own rates.
- ITC for construction is restricted in some cases — ask your tax adviser.
See prices for your pincode with GST shown line by line.
Frequently asked questions
What is the current GST rate on cement?
18%, effective from 22 September 2025. It was previously 28%.
What is the HSN code for cement?
Cement is classified under HSN 2523.
Is GST charged on freight for cement delivery?
Freight and related services can attract GST at their own applicable rates, which may differ from the cement rate. A good quotation shows freight and its tax separately.
Can a builder claim GST input credit on cement?
Input tax credit for construction of immovable property is restricted in several situations under GST law. Eligibility depends on your business and use, so confirm with your tax adviser.
Need materials for this work?
See indicative delivered prices for your pincode, or get an itemised project quotation with freight, unloading and GST shown line by line.
This guide is general information for planning and buying. Quantities, grades and methods for your structure must follow your approved drawings, your engineer’s specification and the applicable Indian Standards.
