In the 45th meeting of the GST council held at Lucknow on 17.09.2021, it was decided that the Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.
The suppliers of the specified bricks/ tiles i.e.,
(a) Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks;
(b) Bricks of fossil meals or similar siliceous earths
(c) Building bricks
(d) Earthen or roofing tiles
Have now threshold limit for exemption from registration upto Rs. 20 lakhs only and in addition, have three options:
(i) Avail special Composition Scheme upto Rs. 50 lakhs;
(ii) Pay GST under Notification No. 02/2022-Central Tax (Rate) dated 30.03.2022 @ 6% without availing ITC
(iii) Pay GST @ 12% while availing ITC.
Sir,
There is one confusion whether rate of 6% is to be paid as compostion dealer or a regular dealer without availing ITC (just like in case of restaurants i.e. 5% & 18%)
CAclubindia
