The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 14/2025 revising Goods and Services Tax (GST) rates on key construction materials and amending the Compensation Cess provisions. The revised rates will come into effect from September 22, 2025.
GST on Construction Materials
The notification prescribes a 6% Central GST (CGST) and an equivalent 6% State/UT GST, making the total intra-State rate 12%, and a 12% Integrated GST (IGST) on inter-State supplies for the following items:
- Fly ash bricks, aggregates, and blocks (Tariff item 6815)
- Bricks of fossil meals or similar siliceous earths (Tariff 6901 00 10)
- Building bricks (Tariff 6904 10 00)
- Earthen or roofing tiles (Tariff 6905 10 00)
This move standardizes tax treatment for widely used eco-friendly and traditional building materials, encouraging sustainable construction practices.
Exemption from Compensation Cess
In addition, CBIC has amended the Compensation Cess (Rate) Notification No. 1/2017 to exempt multiple items by substituting the applicable cess rate with Nil.The exemption applies to a wide range of entries, including items listed under serial numbers 2, 3, 4, 4A, 4B, and several others up to 55 in the original schedule.
Effective Date
All changes will be effective from September 22, 2025, providing clarity and compliance timelines for businesses dealing in construction materials and other affected goods.
Official copy of the notification has been attached
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