Important Keyword: Notification No. 02/2022 – Integrated Tax (Rate), GST Notification 02/2022, Integrated Tax Rate 2022, concessional GST on bricks, GST exemption bricks, fly ash bricks GST
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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 - Integrated Tax (Rate): Seeks to provide for a concessional rate on interstate 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 6 and clause (iv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub- section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council,
hereby exempts the inter-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 integrated tax leviable thereon under section 5 of the Integrated Goods and Services Tax Act, 2017 (13 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 | 6% | 1 |
| 2. | 6901 00 10 | Bricks of fossil meals or similar siliceous earths | 6% | 1 |
| 3. | 6904 10 00 | Building bricks | 6% | 1 |
| 4. | 6905 10 00 | Earthen or roofing tiles | 6% | 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; and credit 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 - Integrated Tax (Rate)
Q1: What is Notification No. 02/2022 – Integrated Tax (Rate) all about?
Answer:
This notification, issued on 31st March 2022, provides a concessional GST rate of 6% on certain interstate supplies like fly ash bricks, fly ash blocks, building bricks, and roofing tiles, subject to specific conditions on Input Tax Credit (ITC).
Q2: Which goods are covered under this concessional 6% GST rate?
Answer:
The goods covered include:
Fly ash bricks/aggregate with 90% or more fly ash content
Fly ash blocks
Bricks of fossil meals or siliceous earths
Building bricks
Earthen/roofing tiles
Q3: What is the main condition attached for availing this concessional rate?
Answer:
The concessional rate is applicable only if the supplier does not avail ITC on goods/services used in supplying such goods. If partial ITC is availed, it must be reversed as per Section 17(2) of CGST Act, 2017.
Q4: From when does this notification come into effect?
Answer:
The provisions of Notification No. 02/2022 – Integrated Tax (Rate) came into force on 1st April 2022.
Q5: How does this notification benefit small brick manufacturers?
Answer:
✅ It reduces GST liability on interstate supplies, making their products more competitive.
✅ Ensures a level playing field for traditional industries like brick kilns.
✅ Encourages the use of eco-friendly fly ash bricks.
Q6: What happens if a supplier avails ITC while charging this concessional rate?
Answer:
If ITC is availed wrongly, the concessional rate benefit will be lost. The supplier may be liable to pay full GST with interest and penalties, as per GST law.
Q7: Is this notification connected to the recommendations of the GST Council?
Answer:
Yes. The concessional rate for the brick industry was based on the recommendations of the 45th GST Council meeting, to support traditional brick kiln businesses.
Q8: Where can I get expert assistance for GST compliance related to this notification?
Answer:
You can consult GST Professionals at Finodha for expert guidance. Additionally:
File your GST Return Online
Apply for GST Registration
Get complete GST Compliance Support
Q9: Does this notification affect both interstate and intrastate supplies?
Answer:
This specific notification applies to interstate supplies under Integrated GST (IGST). However, similar provisions exist under Central and State GST notifications for intrastate supplies.
Q10: What should businesses keep in mind while applying this concessional rate?
Answer:
Ensure no ITC is availed on inputs.
Maintain proper documentation of tax invoices.
Reverse ITC if used partly for taxable supplies.
Stay updated with amendments via GST Experts.
✅ In summary:
Notification No. 02/2022 – Integrated Tax (Rate) offers a concessional GST rate of 6% on specified brick products from April 1, 2022, with the key condition of non-availment of ITC. It aims to support small manufacturers while encouraging eco-friendly construction materials.
Download PDF: Notification No. 02/2022 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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