Red Brick Industry Challenges GST Rates: A Call for Tax Reforms

The red brick industry is urging the government to reassess current GST rates, pushing for a reduction to 5% and removal from the Special Composition Scheme. Currently, red bricks face a 6% GST and 12% with ITC under this scheme.

The industry's demands come after the GST Council's new two-slab structure of 5% and 18% replaced the previous regime, effective September 22. Yet, there hasn't been any change to the rates on bricks, aside from a reduction on 'sand lime bricks' to 5% from 12%.

Omvir Singh Bhati of AIBTMF stresses that reducing GST on bricks would enhance affordability for individual home builders and project developers. Despite the reduction in GST on cement, the lack of adjustment for bricks adds pressure, as higher coal GST increases kiln production costs, affecting a workforce of millions.

(With inputs from agencies.)