Important Keyword: Brick Kiln Composition Scheme, GST for Brick Kilns, Special GST Scheme for Bricks, GST Notification 04/2022, Notification 04/2022 Central Tax, Brick Kiln GST rates, Composition scheme GST bricks, GST for clay bricks, GST compliance for brick kilns,
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[F.No.190354/56/2022-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 31st March, 2022
Notification No. 04/2022 - Central Tax: Seeks to amend notification no. 14/2019-Central Tax to implement special composition scheme for Brick Kilns, as recommended by 45 GSTC
[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R (E).- In exercise of the powers conferred under the proviso to sub-section (1) of section 10 of the CGST Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.14/2019-Central Tax, dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 196(E)., dated the 7th March, 2019, namely:-
In the said notification, in the Table, after serial number 3 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -
| “4. | 6815 | Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks |
| 5. | 6901 00 10 | Bricks of fossil meals or similar siliceous earths |
| 6. | 6904 10 00 | Building bricks |
| 7. | 6905 10 00 | Earthen or roofing tiles”. |
2. This notification shall come into force on the 1st day of April, 2022.
(Vikram Vijay Wanere)
Under Secretary to the Government of India
Note: - The principal notification No.14/2019-Central Tax, dated the 7th March, 2019, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 196(E), dated the 7th March, 2019, and was last amended by notification No. 43/2019 – Central Tax, dated the 30th September, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 729(E), dated the 30th September, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 04/2022 - Central Tax
Q1: What is Notification No. 04/2022 – Central Tax about?
Answer:
Notification No. 04/2022 – Central Tax amends Notification No. 14/2019 – Central Tax to introduce a special composition scheme for brick kilns, as recommended in the 45th GST Council meeting. This scheme simplifies tax compliance for manufacturers of bricks and related products.
Q2: What is the purpose of the special composition scheme for brick kilns?
Answer:
The scheme aims to reduce compliance burdens for brick kiln businesses by allowing them to pay GST at a fixed rate on turnover rather than following standard GST rates and complex input tax credit processes.
Q3: Who is eligible for this scheme?
Answer:
Manufacturers of:
Building bricks
Roofing tiles
Fly ash bricks
Other similar ceramic products
that fall under the notified HSN codes can opt for this scheme, subject to turnover and operational conditions.
Q4: What is the GST rate under the brick kiln composition scheme?
Answer:
Under this special scheme, registered persons can pay tax at a fixed composition rate instead of regular GST rates. The specific rate is prescribed in the amended notification and is typically lower than standard rates, offering cost benefits.
Q5: Can businesses still claim Input Tax Credit (ITC) under this scheme?
Answer:
No. As per the composition scheme principles, eligible persons who opt for this scheme cannot claim ITC on their purchases. This trade-off is compensated by the reduced GST rate.
Q6: When does this scheme come into effect?
Answer:
The scheme came into force as per the date specified in the notification, aligning with the GST Council’s decision. Businesses must opt in before the applicable financial year begins.
Q7: What are the compliance requirements for brick kiln owners under this scheme?
Answer:
Maintain simplified records of turnover.
File returns as per composition taxpayer provisions.
Pay tax at the prescribed composition rate.
For easy compliance, you can use GST Return Filing services from Finodha.
Q8: How is turnover calculated for eligibility?
Answer:
Turnover is calculated based on the aggregate value of taxable supplies made during the financial year, excluding exempt supplies and inward supplies under reverse charge.
Q9: Where can brick kiln businesses get GST registration help?
Answer:
Brick kiln owners can apply for GST registration or switch to the composition scheme with professional support via Online GST Registration at Finodha.
Q10: How does this scheme benefit small and medium brick kiln units?
Answer:
Lower tax rates reduce cost burden.
Simplified filing and compliance.
Better cash flow management due to no ITC complexities.
For additional business compliance support, explore GST Compliance Services.
Download PDF: Notification No. 04/2022 - Central Tax
More Information: https://taxinformation.cbic.gov.in/
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