♦ From 01-04-2022 the manufacturing cost of Brick going to be increase due to new circular of GST ACT. Notification No. 02/2022-Integrated Tax (Rate), Notification No. 02/2022-Central Tax (Rate), Notification No. 03/2022-Central Tax, Notification No. 04/2022-Central Tax, By adding these 4 notification as on 31st March, 2022.
♦ Earlier Bricks manufacturer mostly take GST number as composition dealer and enjoy 1% tax, now as per new circulars they have to pay 6% tax at least.
♦ Bricks manufacturer now not able to take composition number for GST, Notification No. 04/2022-Central Tax.
♦ Indirectly there is also increase in cost of construction of affordable housing.
New circular highlights
1. 01-04-2022 Bricks manufacturer who already in composition dealer have to compulsory transfer GST number to regular dealer. They have to file cmp-04 for converting into regular number.
2. Pay tax @ 6% or 12%
3. No ITC available to the brick manufacturer if pay 6% Tax,
4. Now GST number is compulsory for Bricks manufacturer if turnover cross 20 lacs, earlier 40 lacs limit is not applicable as per new circulars Notification No. 03/2022-Central Tax,.
5. As per below table we have described effect of both the rates.
| Sl. No. | Tariff | Description | Rate
ITC NOT TAKEN
|
Rate
ITC TAKEN |
| (1) | (2) | (3) | (4) | (4) |
| 1. | 6815 | Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks | 6% | 12% |
| 2. | 6901 00 10 | Bricks of fossil meals or similar siliceous earths | 6% | 12% |
| 3. | 6904 10 00 | Building bricks | 6% | 12% |
| 4. | 6905 10 00 | Earthen or roofing tiles | 6% | 12% |
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