Looking for expert help with GST and income tax for ready-mix concrete RMC plants 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
- Ready-mix concrete (heading 3824) is 18% GST from 22 September 2025 (Notification 9/2025-CT(Rate), Schedule II, S. No. 110). Pumping billed with the delivery is taxed at the same 18%.
- Your main inputs are cheaper: sand, crushed aggregates, fly ash and GGBS are 5%, cement and admixtures 18%. All of that is creditable. Diesel is outside GST (Section 9(2), CGST Act), so it carries no credit.
- E-way bills are needed for each load whose value, including GST, is above Rs 50,000 (Rule 138, CGST Rules).
- Large builders deduct 0.1% TDS under Section 194Q on purchases above Rs 50 lakh. Government projects deduct 2% GST TDS under Section 51 on contracts above Rs 2.5 lakh.
- For FY 2025-26, the tax audit report is due by 21 October 2026 (CBDT Circular 07/2026). Cash payments for diesel and wages often decide whether you need one.
What is the GST rate on ready-mix concrete in India? Ready-mix concrete is taxed at 18% GST: 9% CGST plus 9% SGST, or 18% IGST between States. It falls under heading 3824, listed at S. No. 110 of Schedule II of Notification 9/2025-Central Tax (Rate), in force from 22 September 2025. Pumping charges on the same delivery follow the concrete's rate.
An RMC plant runs on thin margins and big volumes. You buy cement, sand and aggregate by the truckload, batch to the customer's grade and send out transit mixers several times a day, mostly to builders and contractors on 30 to 60 day credit. Get the GST wrong and it shows up in a builder's reconciliation, not yours, and the payment stops until it's fixed. This guide covers the rates you buy and sell at, the credit you can and can't take, e-way bills for each load, the TDS your customers deduct, and the income tax and audit rules for FY 2025-26 (AY 2026-27), with the Income-tax Act 2025 sections that apply from 1 April 2026. If you also trade cement and steel, see our cement and steel dealers' guide.
What GST rate applies to what you buy and sell?
Ready-mix concrete is 18%. Most of your raw materials are at 5%, and cement is at 18%. Notification 9/2025-Central Tax (Rate) sets all of these, with Schedule I at 2.5% CGST (5% in total) and Schedule II at 9% CGST (18% in total).
Comparison
GST on RMC Plant Inputs and Outputs (from 22 September 2025)
| Item | HSN and entry | GST |
|---|---|---|
| Ready-mix concrete (your sale) | 3824, Sch II S. No. 110 | 18% |
| Concrete admixtures (plasticisers, retarders) | 3824, Sch II S. No. 110 | 18% |
| Portland, slag and other hydraulic cement | 2523, Sch II S. No. 9 | 18% |
| Natural sand | 2505, Sch I S. No. 166 | 5% |
| Crushed stone, gravel and aggregates | 2517, Sch I S. No. 182 | 5% |
| Granulated slag (GGBS raw material) | 2618, Sch I S. No. 201 | 5% |
| Fly ash | 2621, Sch I S. No. 203 | 5% |
| Batching plant and mixing machinery | 8474, Sch II S. No. 459 | 18% |
| Transit mixer (concrete-mixer lorry) | 8705, Sch II S. No. 541 | 18% |
| High speed diesel | Outside GST, Section 9(2) CGST Act | No GST, no credit |
Source: Notification 9/2025-Central Tax (Rate), Schedules I and II, in force 22 September 2025, as amended up to 01/2026-CT(Rate); Section 9(2), CGST Act
Pumping and placing. Many plants send a boom or line pump with the concrete and bill it on the same invoice. When the pumping is part of the same delivery, it's a composite supply with the concrete as the principal supply, and Section 8(a) of the CGST Act taxes the whole bill at the concrete's rate. Since that's 18% anyway, the practical point is consistency: use one HSN line for the concrete and show pumping as part of the same supply.
Here's a worked invoice for a slab pour. The prices are illustrative.
| Line | Value |
|---|---|
| 30 cubic metres of M25 concrete at Rs 5,200 per cubic metre | Rs 1,56,000 |
| Boom pump for the pour | Rs 9,000 |
| Taxable value | Rs 1,65,000 |
| CGST at 9% | Rs 14,850 |
| SGST at 9% | Rs 14,850 |
| Invoice total | Rs 1,94,700 |
How much input tax credit does an RMC plant actually get?
More than most manufacturers, because your biggest bulk inputs are at 5% while your sale is at 18%. Your net GST in cash is the gap. Here's one cubic metre, using illustrative costs:
| Input per cubic metre | Cost | GST rate | Credit |
|---|---|---|---|
| Cement | Rs 2,100 | 18% | Rs 378 |
| Sand and aggregates | Rs 1,200 | 5% | Rs 60 |
| Fly ash or GGBS | Rs 200 | 5% | Rs 10 |
| Admixture | Rs 150 | 18% | Rs 27 |
| Diesel for batching and delivery | Rs 250 | Outside GST | Nil |
| Total credit | Rs 475 |
On a sale price of Rs 5,200, you charge Rs 936 as GST (18%). After Rs 475 of credit, you pay Rs 461 in cash for each cubic metre. Diesel is the gap that hurts: Section 9(2) of the CGST Act leaves high speed diesel outside GST until a date is notified, so the State VAT you pay on it is a cost.
Capital goods. Credit on batching plant machinery and its foundation is allowed. Section 17(5)(c) and (d) block credit on construction of immovable property, but the Explanation to Section 17 takes "plant and machinery", meaning equipment fixed to earth by a foundation or structural support and that foundation itself, out of that block. The block doesn't cover land, buildings or other civil structures, so credit on your office building or the shed over the plant can still be lost. For transit mixers, Section 17(5)(a) blocks credit only on motor vehicles that seat 13 people or fewer. A transit mixer that delivers your concrete isn't caught by it.
Builders and your registration. A promoter building residential apartments at the concessional rates without credit (Notification 11/2017-CT(Rate), S. No. 3, as amended by Notification 3/2019-CT(Rate)) must buy at least 80% of inputs and input services from registered suppliers, or pay 18% on the shortfall under reverse charge. Being registered and filing on time is a selling point to these customers. Our works contract GST guide explains where builders and contractors can and can't use your credit.
When does each concrete load need an e-way bill?
Rule 138(1) of the CGST Rules requires Part A of FORM GST EWB-01 before goods move when the consignment value is above Rs 50,000. Explanation 2 to Rule 138 says consignment value includes the CGST, SGST or IGST charged on the invoice or delivery challan. So the test is on the tax-inclusive value of each load.
- A 7 cubic metre load at Rs 5,200: Rs 36,400 plus 18% GST (Rs 6,552) is Rs 42,952. Below Rs 50,000.
- A 9 cubic metre load at Rs 5,200: Rs 46,800 plus Rs 8,424 is Rs 55,224. Above Rs 50,000, so it needs an e-way bill.
That works where each load moves on its own invoice or delivery challan. If you raise one invoice for a whole day's pour and send it in several trucks, talk to your adviser about how to document each load. States can also exempt movement within notified areas under Rule 138(14)(d), so check your State's notification before you skip one. Inward loads matter too: a truck of aggregates worth more than Rs 50,000 needs an e-way bill from the supplier or transporter before it reaches you. Our state-wise e-way bill limits guide lists the local rules.
E-invoicing. Once your aggregate turnover crosses Rs 5 crore, you must issue e-invoices through the Invoice Registration Portal for sales to registered buyers (Notification 13/2020-Central Tax, as amended by Notification 10/2023-Central Tax, from 1 August 2023). Most plants supplying builders cross that quickly. See our e-invoicing guide.
Step-by-Step Guide
Monthly GST Routine for an RMC Plant
Book every inward load
Match cement, sand, aggregate, fly ash and admixture invoices to weighbridge slips. Check the supplier's GSTIN and that each truck above Rs 50,000 came with an e-way bill.
Invoice each delivery at 18%
Use heading 3824 for the concrete, include pumping on the same supply, and generate an e-way bill for any load above Rs 50,000 including GST. Issue e-invoices once turnover is above Rs 5 crore.
Match credit with GSTR-2B
Claim only credit that appears in GSTR-2B. Leave out diesel (outside GST) and anything blocked under Section 17(5).
Accept GST TDS from government projects
Where a government department or agency deducts 2% under Section 51 on a contract above Rs 2.5 lakh, accept the credit on the portal so it reaches your cash ledger.
File GSTR-1 and GSTR-3B
Report B2B sales invoice by invoice so builders see them in their GSTR-2B and release your payment.
Source: Sections 8, 9(2), 16, 17(5) and 51, CGST Act; Rule 138, CGST Rules; Notifications 9/2025-CT(Rate), 13/2020-CT and 10/2023-CT
Registration and composition. An RMC plant is a goods supplier, so the registration limit is Rs 40 lakh of aggregate turnover in most States, but Rs 20 lakh in Telangana and nine other States and UTs that didn't adopt the higher limit (Notification 10/2019-Central Tax; Section 22(1), CGST Act). Plants usually cross both in the first few months. Composition rarely fits. Section 10(2)(c) bars inter-State sales, Section 10(4) bars charging GST and claiming credit, and builders and contractors who could use your 18% credit would lose it. Our GST registration service and GST return filing service cover the setup and monthly filings.
What TDS do builders and the plant itself deal with?
Section 194Q on large buyers. A buyer whose business turnover last year was above Rs 10 crore deducts 0.1% on purchases from one seller above Rs 50 lakh in the year (Section 194Q, Income-tax Act 1961). Say a builder buys Rs 80 lakh of concrete from you in the year. TDS is 0.1% of Rs 30 lakh, so Rs 3,000. From 1 April 2026 this is Section 393(1), Table S. No. 8(ii), of the Income-tax Act 2025, with the Rs 10 crore buyer test in the definitions section that follows it.
Why not Section 194C? Some builders deduct 1% or 2% under Section 194C out of habit. Explanation (iv)(e) to Section 194C says "work" doesn't include manufacturing or supplying a product to the customer's specification using material bought from someone other than that customer. Concrete batched to the builder's grade from cement and aggregates you bought fits that exclusion. The position changes if the builder supplies its own cement for you to batch. Then Section 194C(3) applies to the invoice value, excluding material if shown separately. Our Section 194C guide covers the details. Whatever is deducted, check Form 26AS each quarter and follow up on wrong sections, because credit only comes through if the deductor files correctly.
On your own payments. If you're a firm or company, or your turnover last year was above Rs 1 crore, you deduct under Section 194C when you pay contractors: 1% to an individual or HUF and 2% to others, once a single bill is above Rs 30,000 or the year's total is above Rs 1 lakh. Trucks and tippers that bring your sand and aggregate are covered, but Section 194C(6) exempts a transporter who owns ten or fewer goods carriages and gives you a declaration with their PAN. From 1 April 2026 these are Section 393(1), Table S. No. 6(i), and Section 393(4), Table S. No. 8, of the Income-tax Act 2025. Our transporter TDS guide and TDS filing service handle the quarterly returns.
How is an RMC plant taxed, and when is a tax audit due?
Section 44AD rarely applies. Presumptive tax is open only to a resident individual, HUF or partnership firm (not an LLP), with turnover up to Rs 2 crore, or Rs 3 crore where cash receipts are within 5% of turnover. Deemed profit is 6% of digital receipts and 8% of the rest (Section 44AD, Income-tax Act 1961; Section 58(2), Table S. No. 1, of the Income-tax Act 2025 from tax year 2026-27). A plant running a few hundred cubic metres a day passes Rs 3 crore quickly, so you'll usually be taxed on profit from your books. Our Section 44AD guide has the conditions.
The tax audit test turns on cash. Under Section 44AB(a), a business with turnover above Rs 1 crore needs an audit. The limit rises to Rs 10 crore only if both cash receipts and cash payments are each within 5% of the totals. From tax year 2026-27 these thresholds are in Section 63(1), Table S. No. 1, of the Income-tax Act 2025.
Example: a plant with Rs 6 crore turnover in FY 2025-26. Builders pay by bank transfer, so cash receipts are 1%. But the plant paid Rs 30 lakh of its Rs 5.4 crore costs in cash for diesel top-ups, loading labour and site expenses. That's about 5.6% of payments, above 5%. The Rs 10 crore limit is lost, the Rs 1 crore limit applies, and the plant needs a tax audit. Pay diesel and wages by bank or UPI to stay within 5%.
For FY 2025-26, CBDT Circular 07/2026 dated 28 September 2026 extended the audit report due date to 21 October 2026 and the return for audit cases to 21 November 2026. Our tax audit due date guide covers the forms and penalty.
Payments to small suppliers. Section 43B(h) allows a deduction for amounts owed to a micro or small enterprise only when paid, if you pay beyond the time limit in Section 15 of the MSMED Act 2006 (Section 37(2)(g) of the Income-tax Act 2025 from tax year 2026-27). It works the other way too. If your plant is registered as a micro or small enterprise, a builder who holds your bills past that limit can lose the deduction until the year it pays, which gives you a reason to raise overdue bills early. Our Section 43B(h) guide explains the deadlines.
Cash receipts. Section 269ST bars receiving Rs 2 lakh or more in cash from one person in a day, for one transaction or for one event (Section 186(1) of the Income-tax Act 2025). The penalty under Section 271DA equals the amount received. A homeowner paying cash for a slab pour is the usual risk.
Common mistakes RMC plants make
- Claiming credit on diesel. It's outside GST. There's no GST to claim, whatever the fuel bill shows.
- Skipping e-way bills on bigger loads. The Rs 50,000 test includes GST, so a 9 cubic metre load at Rs 5,200 needs one.
- Accepting 194C deductions on pure supply. Concrete from your own material is a purchase of goods. Large buyers deduct under Section 194Q at 0.1%.
- Losing the Rs 10 crore audit limit through cash payments. Cash receipts are easy to keep low. Cash for diesel and labour is what tips plants over 5%.
- Missing the Section 51 credit on government jobs. The 2% sits on the portal until you accept it.
How Tax Garden helps ready-mix concrete plants
We match your cement, aggregate and admixture credits against GSTR-2B, file GSTR-1 and GSTR-3B through our GST return filing service, and track 194Q and Section 51 deductions so builder and government payments reconcile. Our accounting and bookkeeping service keeps the books audit-ready, and we file your ITR through our ITR filing service. For the wider building-materials rate list, see our construction materials GST guide.
