Important Keyword: Notification No. 02/2022 – Central Tax (Rate), GST on bricks, concessional GST rate 3%, fly ash bricks GST, GST exemption bricks, Notification 02/2022 Central Tax, GST on fly ash bricks, concessional GST 3%, brick kiln GST, GST Council decisions 2022.
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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. 02/2022 - Central Tax (Rate): Seeks to provide for a concessional rate on intra state supply of bricks conditional to not availing the ITC, as recommended by 45 GSTC
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 11 and sub-section (1) of section 16 of the CGST Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby exempts the intra-state supplies of goods,
the description of which is specified in column (3) of the table below, falling under the tariff item, sub-heading, heading or Chapter, as specified in the corresponding entry in column (2) of the said table, from so much of the central tax leviable thereon under section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017) as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said table and subject to the relevant conditions annexed to this notification, the condition number of which is mentioned in the corresponding entry in column (5) of the said table:
Table
| Sl. No. | Tariff item, sub-heading, heading or Chapter | Description | Rate | Condition No. |
| (1) | (2) | (3) | (4) | (5) |
| 1. | 6815 | Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks | 3% | 1 |
| 2. | 6901 00 10 | Bricks of fossil meals or similar siliceous earths | 3% | 1 |
| 3. | 6904 10 00 | Building bricks | 3% | 1 |
| 4. | 6905 10 00 | Earthen or roofing tiles | 3% | 1 |
Explanation. –
- For the purposes of this notification, “Tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
- The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
ANNEXURE
| Condition No. | Condition |
| 1. | credit of input tax charged on goods or services used exclusively in supplying such goods has not been taken; andcredit of input tax charged on goods or services used partly for supplying such goods and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such goods is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and the rules made thereunder. |
2. This notification shall come into force on the 1st day of April, 2022.
(Vikram Vijay Wanere)
Under Secretary to the Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 02/2022 - Central Tax (Rate)
Q1: What is Notification No. 02/2022 – Central Tax (Rate)?
Answer:
Notification No. 02/2022 – Central Tax (Rate), issued on 31st March 2022, provides a concessional GST rate of 3% on intra-state supply of certain goods like fly ash bricks, building bricks, and earthen tiles, subject to specified conditions.
Q2: Which products are covered under this notification?
Answer:
The concessional 3% GST applies to:
Fly ash bricks/blocks (with ≥90% fly ash content)
Bricks of fossil meals/siliceous earths
Building bricks
Earthen or roofing tiles
Q3: What is the key condition for availing this concessional rate?
Answer:
The supplier must not avail Input Tax Credit (ITC) on goods/services used in making these supplies. If ITC is partly availed for mixed supplies, it must be reversed as per Section 17(2) of CGST Act, 2017.
Q4: From when is Notification No. 02/2022 – Central Tax (Rate) effective?
Answer:
The notification is applicable from 1st April 2022.
Q5: Why was this concessional rate introduced?
Answer:
It was introduced on the recommendation of the GST Council (45th meeting) to support the brick industry, especially eco-friendly fly ash bricks, by reducing compliance costs and promoting sustainable construction practices.
Q6: Does this notification affect ITC eligibility of brick manufacturers?
Answer:
Yes ✅. To avail the 3% concessional GST rate, brick manufacturers and suppliers must forego ITC. If they wish to avail ITC, the regular applicable GST rate (12%) will apply.
Q7: How does this impact small and medium businesses in the brick industry?
Answer:
The concessional rate reduces GST liability, improving cash flow 💰. However, small businesses must weigh the trade-off between lower tax rate without ITC vs. higher rate with ITC depending on their input structure.
👉 Need expert guidance? Get professional help from a GST Expert for compliance decisions.
Q8: How should businesses file returns for supplies under this notification?
Answer:
Businesses must report these supplies at the concessional 3% rate in GSTR-1 and GSTR-3B. Correct declaration is crucial to avoid penalties. Assistance for accurate GST Return Filing can be taken from Finodha professionals.
Q9: What happens if ITC is wrongly claimed while availing 3% concessional rate?
Answer:
Wrong ITC claim may attract reversal of ITC, interest, and penalties under CGST Act. Hence, businesses must ensure compliance and consider professional GST Compliance services.
Q10: How does Notification 02/2022 link with earlier GST updates for brick kilns?
Answer:
This concessional scheme complements Notification No. 03/2022 – Central Tax & Notification No. 04/2022 – Central Tax (Rate), which provided special composition schemes for brick kilns. Together, they aim to simplify compliance and encourage sustainable practices.
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Download PDF: Notification No. 02/2022 - Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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