GST on Cement: Now 18% (Cut from 28%)

GST on cement in India is now 18%. Until 21 September 2025 it sat in the 28% slab. The 56th GST Council meeting cut it, and the new rate has applied from 22 September 2025. If you're building a house, few changes in GST 2.0 matter more.

GST rate on cement and HSN code

Source: 56th GST Council press release (3 September 2025) and Notification 9/2025-Central Tax (Rate).

GST on a cement bag: the tax inside one bag

A dealer's bag price almost always includes GST. Dividing gets you the tax; multiplying gives the wrong figure. Say a 50 kg bag is ₹380:

Under the old 28% that same ₹322.03 would have carried ₹90.17 of tax and sold for about ₹412. About ₹32 cheaper per bag, if the company and dealer actually passed the cut on. ₹380 is only an example; prices move by brand and city.

Want to check your bill? Pick Remove GST in the calculator, type the bag price and the number of bags.

On a 1,000 sq ft house

Contractors often estimate around 0.4 bags per square foot of built-up area. A 1,000 sq ft ground floor then needs roughly 400 bags.

Nearly ₹13,000 less on cement. Your own number will move with the design and the brand you pick.

GST on cement and steel for a house

Cement is only half the material bill on an RCC house. The TMT bars go on a separate invoice under HSN 7214, sold by the kg, and they carry 18% GST too. Say a family in Wagholi is adding a floor and buys 200 bags at ₹320 each and 2,000 kg of TMT at ₹60 a kg, both prices before GST. These are round numbers for the maths; ask your dealer for the day's rate.

Notice where the tax sits. The steel carries almost twice the GST of the cement, simply because you spend more on it. So when you compare dealers, look at the steel rate per kg before GST as closely as the bag price. The calculator above works for both: run them one at a time and add the totals.

Hiring a contractor

Buy cement yourself and the dealer's bill shows 18%. Give the whole job, material plus labour, to a contractor and the GST is on the contract value instead, at whatever rate fits that construction service. That may not be 18%, so ask what the invoice will say.

Reading the bill

You should see HSN 2523 and 18%, split 9% CGST and 9% SGST for a local dealer. A bill dated 22 September 2025 or later that still shows 28% is wrong. Buying in bulk? Ask for the per-bag price before GST. Comparing two dealers gets much easier.

General information, not tax advice. Bag prices and quantity estimates are examples only.

Last reviewed 29 October 2026.