Looking for expert help with Income tax and GST for fly ash brick, concrete block and paver block makers India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- Concrete blocks, hollow blocks, paver blocks, kerb stones and cement tiles (HSN 6810) are 18% GST from 22 September 2025 (Notification 9/2025-CT(R), Schedule II, S. No. 226).
- Fly ash bricks, fly ash blocks and fly ash aggregates (HSN 6815) are 12% with input tax credit, or 6% if you give up the credit (Notifications 14/2025-CT(R) and 02/2022-CT(R)).
- Make even one fly ash product and the whole unit is out of composition, and its registration limit is Rs 20 lakh.
- On the 6% option, credit on shared inputs like cement is split by turnover under Rule 42, and the fly ash share is reversed.
- For income tax, Section 44AD (Section 58 from 1 April 2026) covers turnover up to Rs 2 crore or Rs 3 crore. Large builders deduct 0.1% TDS on purchases above Rs 50 lakh.
What is the GST rate on concrete blocks, paver blocks and fly ash bricks? Concrete blocks and paver blocks (HSN 6810) are 18% GST under Schedule II of Notification 9/2025-Central Tax (Rate), from 22 September 2025. Fly ash bricks and blocks (HSN 6815) are 12% with input credit under Notification 14/2025-Central Tax (Rate), or 6% without credit under Notification 02/2022-Central Tax (Rate).
Most block plants don't make just one thing. The same hydraulic press turns out fly ash bricks in the morning and solid concrete blocks in the afternoon, and the vibro table next to it makes zig-zag pavers and kerb stones for a builder's driveway. Those products sit in two different GST headings with different rates, and the fly ash line drags the whole unit into the brick rules on registration and composition. This post covers rates, the 6% option and how credit splits between products, registration, and income tax for FY 2025-26 (AY 2026-27) under the Income-tax Act 1961, with the Income-tax Act 2025 sections that apply from 1 April 2026. It's for owners of fly ash brick, concrete block and paver block units, and the CAs who file for them.
GST rate and HSN code for each product
The line is simple once you see it: anything made of cement or concrete is 6810 at 18%; fly ash bricks, blocks and aggregates are 6815 under the special brick rates.
Comparison
GST on Blocks, Bricks and Pavers (from 22 September 2025)
| Product (HSN) | GST | Notification entry |
|---|---|---|
| Solid and hollow concrete blocks (6810) | 18% | 9/2025-CT(R), Sch II, S. No. 226 |
| Interlocking paver blocks, kerb stones of concrete (6810) | 18% | 9/2025-CT(R), Sch II, S. No. 226 |
| Cement tiles, precast slabs, concrete pipes and poles (6810) | 18% | 9/2025-CT(R), Sch II, S. No. 226 |
| Fly ash bricks, fly ash blocks, fly ash aggregates (6815) | 12% with ITC | 14/2025-CT(R), S. No. 1 |
| Same fly ash products, without ITC (6815) | 6% | 02/2022-CT(R), S. No. 1, as amended by 10/2022 |
| Sand lime bricks (Chapter 68) | 5% | 9/2025-CT(R), Sch I, S. No. 400 |
| Natural stone setts, curbstones, flagstones (6801) | 18% | 9/2025-CT(R), Sch II, S. No. 217 |
Source: CBIC Notifications 9/2025-CT(R) and 14/2025-CT(R) (17 September 2025, in force 22 September 2025), 02/2022-CT(R) and 10/2022-CT(R)
Inside your State, 18% is billed as 9% CGST plus 9% SGST, and 12% as 6% plus 6%. A sale to a buyer in another State carries IGST at the same total: 18%, 12%, or 6% under the matching Integrated Tax notifications (14/2025-IT(R) and 02/2022-IT(R)).
Two points catch people out. First, Schedule II's 6815 entry (S. No. 231) is 18%, but it expressly leaves out fly ash bricks, aggregates and blocks, so those three never fall into the 18% bucket. Second, if you used to read that fly ash bricks needed 90% fly ash for the lower rate, that wording went on 18 July 2022 (Notification 10/2022-CT(R)).
Your raw materials are mostly cheaper than your output. Fly ash (2621, Sch I S. No. 203), natural sand (2505, S. No. 166) and crushed stone or aggregates (2517, S. No. 182) are 5%. Cement (2523, Sch II S. No. 9) is 18%, and so is block-making and mixing machinery under heading 8474 (Sch II S. No. 459).
The 6% option: what you give up on shared inputs
The 6% rate comes with a condition (Notification 02/2022-CT(R), Condition 1). You can't take credit on inputs used only for fly ash products. Credit on inputs used for both fly ash products and other taxable goods has to be reversed "as if supply of such goods is an exempt supply", under Section 17(2) of the CGST Act and the rules under it. That means Rule 42 of the CGST Rules: common credit is split in the ratio of the fly ash turnover to your total turnover in the State for the period (D1 = E/F x C2).
Here's a mixed unit in one month, all sales inside the State:
| Item | Amount | GST |
|---|---|---|
| Fly ash brick sales | Rs 6,00,000 | 12% or 6% |
| Concrete block and paver sales | Rs 4,00,000 | 18% = Rs 72,000 |
| Cement bought (used for both) | Rs 5,00,000 | 18% = Rs 90,000 |
| Stone dust and aggregates (used for both) | Rs 2,00,000 | 5% = Rs 10,000 |
| Fly ash bought (only for bricks) | Rs 1,00,000 | 5% = Rs 5,000 |
At 12%: output tax is Rs 72,000 on bricks plus Rs 72,000 on blocks, so Rs 1,44,000. You claim all Rs 1,05,000 of credit and pay Rs 39,000 in cash.
At 6%: output tax is Rs 36,000 on bricks plus Rs 72,000 on blocks, so Rs 1,08,000. The Rs 5,000 on fly ash can't be claimed at all. Common credit is Rs 1,00,000, and the fly ash share is 6,00,000 / 10,00,000, so Rs 60,000 is reversed. You keep Rs 40,000 of credit and pay Rs 68,000 in cash.
So the 6% option turns Rs 65,000 of credit into a cost for you, while your brick buyers pay Rs 36,000 less GST. It suits a plant that sells mostly to individuals building their own homes, who can't claim credit and shop on price. A plant selling to builders and contractors who claim credit usually does better at 12%. Run these numbers on your own mix before you pick, and use one option consistently. The notification doesn't say how a mid-year switch would work, so talk to your CA before changing.
Registration and composition for block units
When to register. Section 22(1) of the CGST Act sets the limit at Rs 20 lakh of aggregate turnover (Rs 10 lakh in special category States). Notification 10/2019-Central Tax raises it to Rs 40 lakh for persons engaged only in supplying goods, with two exceptions that matter here:
- It doesn't apply to persons supplying the goods in its Table. Notification 03/2022-Central Tax added fly ash bricks, aggregates and blocks to that Table from 1 April 2022 (wording updated by 15/2022-Central Tax from 18 July 2022). A unit that sells any fly ash product registers above Rs 20 lakh.
- It doesn't apply to intra-State suppliers in Telangana, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura and Uttarakhand. A Hyderabad concrete block plant registers above Rs 20 lakh even if it never touches fly ash.
Laying pavers on site also counts against the "goods only" condition, since supplying and laying pavers in a driveway or parking area is generally a works contract (Section 2(119), CGST Act), which is a service. Our registration limit guide lists the States, and our GST registration service files the application.
Composition. Section 10(2)(e) of the CGST Act bars manufacturers of notified goods, and Notification 04/2022-Central Tax (wording updated by 16/2022-Central Tax) put fly ash bricks, aggregates and blocks on that list in Notification 14/2019-Central Tax. The bar attaches to the person, not the product, so a unit making 90% concrete blocks and 10% fly ash bricks is still out.
A unit making only concrete products can opt in if its previous-year aggregate turnover was up to Rs 1.5 crore (Notification 14/2019-Central Tax) and it makes no inter-State sales (Section 10(2)(c)). A manufacturer pays 0.5% CGST plus 0.5% SGST on turnover (Rule 7, CGST Rules), so 1%. Laying work is allowed up to 10% of last year's turnover or Rs 5 lakh, whichever is higher (Section 10(1), second proviso). You can't charge GST on your bill or claim input credit (Section 10(4)), so builders who want credit will often prefer a regular-scheme supplier. Our composition scheme guide compares the options.
Step-by-Step Guide
Monthly GST Routine for a Mixed Block Plant
Bill each product under its own HSN
6810 at 18% for concrete blocks and pavers, 6815 at 12% (or 6%) for fly ash products. One invoice can carry both lines at their own rates.
Tag every purchase
Mark each inward invoice as fly-ash-only, concrete-only or common. On the 6% option, don't claim credit on the fly-ash-only lines.
Work out the Rule 42 reversal
On the 6% option, reverse common credit in the ratio of fly ash turnover to total turnover in the State for the month, and report it in GSTR-3B.
Generate e-way bills for loads
A truckload of blocks within your State needs an e-way bill when the consignment value exceeds Rs 50,000 (Rule 138(1), CGST Rules).
File GSTR-1 and GSTR-3B
Show 6810 and 6815 sales under separate HSN rows in GSTR-1 so the rates match what you paid in GSTR-3B.
Source: Notification 02/2022-CT(R) Condition 1; CGST Act Section 17(2); CGST Rules, Rules 42 and 138
Income tax: 44AD, TDS from builders and cash sales
Section 44AD. For FY 2025-26, a resident individual, HUF or partnership firm (not an LLP) can declare 6% of turnover received by bank transfer, UPI or account payee cheque (by the return due date) and 8% of the rest as profit, under Section 44AD of the Income-tax Act 1961. The limit is turnover of Rs 2 crore, or Rs 3 crore if cash receipts are within 5% of turnover. From 1 April 2026 the same scheme is Section 58 of the Income-tax Act 2025, with the same rates and limits.
Example: a proprietor's block plant has turnover of Rs 1,50,00,000 in FY 2025-26: Rs 1,30,00,000 by bank and UPI and Rs 20,00,000 in cash from walk-in home builders. Cash is about 13% of turnover, so the limit is Rs 2 crore, and Rs 1.5 crore is within it. Deemed profit is 6% of Rs 1,30,00,000 (Rs 7,80,000) plus 8% of Rs 20,00,000 (Rs 1,60,000), so Rs 9,40,000. A press, a mixer and a fleet of pallets make for heavy depreciation, so check with your CA whether books show a lower real profit. Our Section 44AD guide covers the five-year lock-in if you later opt out.
TDS on purchases by big builders. A builder whose turnover in the previous year exceeded Rs 10 crore is a "buyer" under Section 194Q of the 1961 Act. If it buys more than Rs 50 lakh of goods from you in a year, it deducts 0.1% on the amount above Rs 50 lakh. A builder buying Rs 80,00,000 of blocks and pavers from you deducts 0.1% of Rs 30,00,000, which is Rs 3,000. From 1 April 2026 this is Section 393(1), Table Sl. No. 8(ii), of the Income-tax Act 2025. Check that it shows in your Form 26AS before you file. Our Section 194Q guide covers the details.
Cash from home builders. Section 269ST of the 1961 Act bars receiving Rs 2,00,000 or more in cash from one person in a day, for a single transaction, or for one event or occasion. From 1 April 2026 it's Section 186 of the Income-tax Act 2025. The penalty is equal to the amount received (Section 271DA; Section 451 of the 2025 Act). So if a customer pays Rs 2,40,000 in cash for one order of bricks for their house, even across several deliveries, the whole Rs 2,40,000 is exposed. Take anything that size by UPI or bank transfer. On your side, cash paid for an expense above Rs 10,000 to one person in a day is disallowed (Section 40A(3); Section 36(4) of the 2025 Act), which matters when you pay fly ash transporters. See our cash transaction limits guide.
Common mistakes in block and brick plants
- Billing fly ash bricks at 18%. They're 12% or 6%, never 18%. Set up separate item codes for 6810 and 6815 in your billing software.
- Billing concrete blocks at 12%. A solid cement block isn't a fly ash brick just because it contains some fly ash in the mix. If you aren't sure which heading a block falls in, get it confirmed before you set the rate.
- Taking the 6% rate and keeping all the credit. Condition 1 requires reversal on shared inputs such as cement and stone dust, every month you sell fly ash products.
- Opting for composition while making fly ash bricks. Even a small fly ash line bars the whole unit.
- Using the Rs 40 lakh limit. It's Rs 20 lakh for any unit with fly ash products, and for every unit in Telangana.
- Taking large cash orders. Rs 2 lakh or more from one customer for one order is a penalty equal to the cash received.
How Tax Garden helps block and brick makers
We start by splitting your product list into 6810, 6815 and anything else, because that split decides your rate, your registration limit and whether composition is open to you. If you make fly ash products, we run the 12% versus 6% numbers on your actual purchase and sales mix before you choose. We register you, set up item codes, work out the monthly Rule 42 reversal, and file GSTR-1 and GSTR-3B through our GST return filing service. At year end we reconcile 194Q TDS from builders with Form 26AS, test 44AD against your books and file your ITR through our ITR filing service. Call or WhatsApp us on 9640290977.
Related reading: GST and income tax for brick kiln owners, GST for ready-mix concrete plants, which share your cement and aggregate suppliers, GST for cement and steel dealers, and our construction materials GST rate list.
