Notification No. 01/2022-Central Tax (Rate) New Delhi, the 31st March, 2022
Notification No. 02/2022-Central Tax (Rate) New Delhi, the 31st March, 2022
Notification No. 10/2019-Central Tax New Delhi, the 7 th March, 2019
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:
| 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 above structure was announced through 4 Notifications issued on 31st March, 2022 which have been discussed in detail below:-
| Notifi-cation No. | Corres-ponding Section/ Notification
|
Amendment | Implication | |||||||||||||||||||||||||
| 01/2022- Central Tax (Rate) | Section 9(1) and Notification No. 1/2017-Central Tax (Rate) dt 28.06.2017 | in Schedule I –2.5%, serial numbers 225B,226, 227, 228 and the entries relating thereto shall be omitted | Earlier Bricks were classified under Schedule I – 2.5% which has been omitted now | |||||||||||||||||||||||||
| in Schedule II –6%, after serial number 176A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely –
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Now Bricks have been added in Schedule II – 6%. Which means the tariff rate is 12% now. (6% CGST and 6% SGST) | |||||||||||||||||||||||||||
| 02/2022-Central Tax (Rate) | Section 11(1), Section 16(1) | 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:
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By this notification, exemption has been provided from the Rate exceeding 3% in case the condition referred under column 5 is fulfilled.
Condition 1 is as follows – 1. ITC on goods exclusively used in supply of these goods has not been availed 2. 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. |
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| 03/2022-Central Tax | Section 23(2) and Notification No. 10/2019-Central Tax, dated the 7th March, 2019 | In the said notification, in the Table, after serial number 3 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –
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Notification No. 10/2019 talks about exemption from obtaining registration under GST if person is exclusively dealing in goods and have a turnover of less than 40 Lakhs. But earlier 3 goods were not excluded from this benefit which are – Ice Cream (Tariff 21050000), Pan Masala, (Tariff 21069020) and Tobacco (Tariff 24).
After this notification this list has increased to 7. This implies person dealing in these goods are liable to obtain registration if its turnover exceed Rs. 20 Lakhs. |
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| 04/2022-Central Tax | Section 10(1) and Notification No. 14/2019-Central Tax, dated the 7th March, 2019 | In the said notification, in the Table, after serial number 3 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –
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Earlier person dealing in 3 items i.e. Ice Cream (Tariff 21050000), Pan Masala, (Tariff 21069020) and Tobacco (Tariff 24) were not able to opt for composition scheme as per Notification 14/2019.
Now this list is increased to 7 which means person dealing in Brick CANNOT OPT FOR COMPOSITION SCHEME. |
By above its clear that any person dealing in Brick CANNOT OPT FOR COMPOSITION SCHEME. Which means now there are only two option of charging GST by brick dealers i.e. 12% (with ITC) or 6% (without ITC).
Person need to issue Tax Invoice in both the option and have to charge GST on the same either 12% or 6% and have to file GSTR-1 and 3B as per normal dealer.
But practically as on 10th May, 2022, While filing GSTR-1 there is no option in GST portal to avail option 2 of paying 6% GST without ITC.
A clarification/portal change is awaited from the GST department at the earliest.
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