Key Amendment in GST Rates for Construction Materials
Government Update:
G.S.R. (E) issues amendments under IGST Act, 2017, affecting GST rates on specific construction materials.
Rate Changes:
Removal of certain items from the 5% tax slab (Schedule I) and addition of new items at 12% tax rate (Schedule II).
Removed Items:
Serial numbers 225B, 226, 227, and 228 are omitted from Schedule I – 5%.
Newly Added Items:
Introduction of items like fly ash bricks, fly ash blocks, bricks of fossil meals, building bricks, and earthen or roofing tiles in Schedule II – 12%.
Effective Date:
Amendments come into effect from April 1, 2022, impacting the tax treatment of specified construction goods.
Simplified Notification:
Aims to simplify the GST structure for the construction sector by redefining tax rates for key building materials.
Compliance Notice:
Businesses dealing with these materials must adhere to the updated GST rates and comply with the changes for seamless operations.
Note: These amendments aim to align tax rates with industry needs and facilitate a smoother tax regime for construction-related activities.