ITC ON FLY ASH BRICKS

This query is : Resolved

Sunil Patnaik (Querist)
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28 October 2024 I have Fly ash Bricks Manufacturing unit where the Fly ash content is more than 90%, what is the Rate of GST and can i claim ITC ?? Please Suggest.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2024 Under the new tax rates structure, the Government has notified a higher rate of GST i.e. 12% on the specified products, where the benefit of claiming ITC would be available to the supplier. Alternatively, the specified products can be supplied with the lower GST rate of 6% with a condition that the benefit of ITC would not be available in respect of goods or services used (exclusive or common) in supplying such goods.

The suppliers of the specified products would no longer be able to avail the benefit of the composition scheme under Section 10 of the CGST Act. The threshold limit of registration for such suppliers has also been decreased from Rs. 40 lakhs to Rs. 20 lakhs. In other words, the supplier of specified products would be required to register as a normal taxpayer under the GST law if their aggregate turnover in the financial year exceeds Rs. 20 lakhs.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2024 The Government has notified a revised tax structure for the Brick Kilns sector effective from April 01, 2022. In this new tax structure, the Government has provided the GST rate of 12% (with ITC) or 6% (without ITC) for the below products (hereinafter referred to as ‘specified products’):

S. No. Tariff item, sub-heading, heading or Chapter
Description

1. 6815 Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks
2. 6901 00 10 Bricks of fossil meals or similar siliceous earths
3. 6904 10 00 Building bricks
4. 6905 10 00 Earthen or roofing tiles
The rate structure implemented by the Government is an outcome of the recommendations of the 45th GST Council meeting.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2024 The rate structure for the supply of specified products with effect from April 01, 2022, is summarized as under:

Option

Particulars GST Rate Implications

1. Payment of tax at a higher rate 12% No restriction in respect of ITC
File monthly/ quarterly returns furnishing the details of outward supply, ITC, payment of tax, etc.

2. Payment of tax at a lower rate 6% ITC would not be available in respect of the following:
Goods or services used exclusively in supplying such goods; and
Common ITC to be reversed in accordance with Section 17(2) of the CGST Act
File monthly/ quarterly returns furnishing the details of outward supply, payment of tax, etc.