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Key Highlights
- Ceramic tiles, glazed or unglazed, are charged 18% GST, affecting the price of construction and renovation works.
- Construction ceramic bricks and blocks benefit from a reduced 5% GST rate, thus being cheaper for developers and builders.
- Sanitaryware items such as wash basins and sinks are charged 18% GST, while ceramic kitchenware and tableware come under 12% GST.
- Misclassification under erroneous tile HSN codes may result in non-compliance and unjustified tax burdens on businesses.
Ceramic items are a key component in construction, interior decoration, and industrial usage. Tiles and sanitaryware, bricks, and refractory items are some of the many items where ceramics are applied because of their durability and look. With a large variety of ceramic products, it is necessary to classify them appropriately under the harmonised system of nomenclature (HSN) to ascertain the relevant Goods and Services Tax (GST) .Chapter 69 of the HSN includes other ceramic products like tiles, kitchenware, sanitary fittings, and other industrial ceramics. The rate of GST is different for the products based on their classification, and hence, businesses must be well-educated about the structure of taxation.This article explains the GST rate and HSN codes for ceramic products to make traders, manufacturers, and purchasers understand the taxation implications effectively. Also Read - Understand the disadvantages of GST
HSN Codes for Ceramic Products
The following are important tile HSN codes under Chapter 69 that categorise ceramic products:
| HSN Codes | Export and Import HSN codes | Products Description | Rates (%) |
| 69 | 9081010, 69081020, 69081090, 69089010, 69089020, 69089090 | Clay idols | NIL |
| 6901 00 10 | – | Bricksmanufacturedfromsiliceous earths or fossil fuels | 5% |
| 6904 10 00 | – | Assemblyofbricks | 5% |
| 6905 10 00 | – | Rooforearthtiles | 5% |
| 6909 | 69091100, 69091200, 69091910, 69091990, 69099000 | Jars, pots, and othersucharticlesemployedfor storing andconveyingceramic products | 12% |
| 6911 | 69111011, 69111019, 69111021, 69111029, 69119010, 69119020, 69119090 | Porcelain or china toiletries, kitchenware, tableware, and otherhouseholdarticles | 12% |
| 6912 | 69120010, 69120020, 69120030, 69120090 | tableware, Kitchenware, and otherhouseholdand toiletarticles made of china or porcelain | 12% |
| 6913 | 69131000, 69139000 | Statues andotherdecorativearticles | 12% |
| 6912010, 6910020 | – | Tableware, kitchenware, and otherclay and terracottaarticles | 12% |
| 6913900 | – | Statuettes and otherornamentalceramicproducts,forexample,blue pottery | 12% |
| 6901 | 69010020, 69010030, 69010090 | Tiles,blocks, and other ceramicitemsproducedfrom siliceous fossils (e.g.,diatomite, tripolite, or kieselguhr) or siliceous earth | 18% |
| 6902 | 69021010, 69021020, 69021030, 69021040, 69021050, 69021090, 69022010, 69022020, 69022030, 69022040, 69022050, 69022090, 69029010, 69029020, 69029030, 69029040, 69029090 | Refractory ceramicbuildingmaterials,includingbricks, blocks, and tiles, exceptsiliceous fossilfuelor siliceousearthmaterials | 18% |
| 6903 | 69031010, 69031090, 69032010, 69032090, 69039010, 69039020, 69039030, 69039040, 69039090 | Refractoryceramicarticlesnot related to siliceous fossil meals or siliceous earth,includingcrucibles, retorts, muffles, nozzles, plugs, supports, cupels, tubes, pipes, sheaths, and rods | 18% |
| 6904 | 69049000 | Ceramic flooringblockfiller or support tiles, andthelike | 18% |
| 6905 | 69059000 | Architecturaldecorations, chimney liners, chimney pots, cowls, and other ceramic buildingmaterials | 18% |
| 6906 | 69060000 | pipe,pipe fittings,ceramic pipes,andguttersand conduits | 18% |
| 6907 | 690730, 690740, 69072100, 69072200, 69072300, 69073010, 69074010, 69071010, 69071090, 69079010, 69079090 | decoratingceramics;mosaicceramiccubes andsimilar, whether ornot on abackground; ceramicwalltiles,pavingtiles,andhearthtiles | 18% |
| 6909 | 69091100, 69091200, 69091910, 69091990, 69099000 | Ceramicgoodsfor technical, chemical, or laboratoryuse;troughs, tubs, and othercontainers of asimilarnature for agricultural purposes;ceramic pots, jars, and otherpiecesof a type used forcarryingor packagingcommodities | 18% |
| 6910 | 69101000, 69109000 | Baths, bidets, water closet pans,cisterns forflushing, urinals, wash basins,pedestals forwashbasins, and othersimilarsanitaryfixtures | 18% |
| 6914 | 69141000, 69149000 | Other ceramic articles | 18% |
| 6912040 | – | Clay lamps andearthenwarepots | NIL |
Impact of GST Categorisation
The GST categorisation of ceramic products under Chapter 69 has a significant effect on business pricing and tax compliance. GST rates between 5% and 18% require traders and manufacturers to classify products properly under the right tile HSN codes to be in compliance and achieve maximum tax benefits. Also Read - Understand the impact of GST on SMEs
Comply With GST Norms For Proper Tax Filing
Knowledge of the implications of GST on tiles, bricks, sanitaryware, and kitchenware is essential for ceramics industry players. A proper classification under HSN codes 6901, 6902, 6907, 6910, and 6911 will result in correct tax calculations and hassle-free trade transactions.For retailers, manufacturers, and builders, keeping abreast of GST guidelines on ceramic products enables them to run their businesses smoothly and reduce tax burdens.You can find your GST liability using the online GST calculator , a quick and efficient tool. Just enter a few details and find out your GST tax liability instantly.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST on ceramic tiles?
Ceramic tiles (unglazed and glazed) falling under HSN Code 6907 have an 18% GST rate. The tiles are commonly used for flooring and wall work in residential and commercial establishments. The tax affects both the manufacturers and the end-users, which affects the overall cost of a project.
Are ceramic blocks and bricks taxed at different rates?
Yes, ceramic bricks and blocks under HSN Code 6901 are subject to a lower 5% GST rate, which is favourable to the construction sector. The reduced tax rate contributes to lowering overall infrastructure costs, thus making housing and commercial development more affordable.
What is the HSN code for sanitaryware products?
Sanitaryware products such as ceramic basins, sinks, and baths come under HSN Code 6910 and have an 18% GST. These products are needed for domestic and commercial purposes, and the tax structure makes them competitively priced.
How is GST on refractory bricks calculated?
Refractory bricks and other products falling under HSN Code 6902 are charged 18% GST, considering their specific industrial uses. These bricks are utilised in high-temperature conditions like furnaces and kilns, and thus they are a critical input for industrial processes.
Is GST levied on imported ceramic products?
Yes, imported ceramics are subject to customs duties alongside GST, depending on their classification under HSN. Importers must account for both GST and import duties in pricing these ceramics for the home market.
Are homemade ceramic products levied at a uniform rate?
Yes, both machine-made and handmade ceramic goods are charged with the same GST rate as that applicable to their corresponding HSN code. Nevertheless, exemptions or concessions can be availed on some categories subject to government policies.
What is the GST rate on ceramic kitchenware?
Ceramic tableware and kitchenware falling under HSN Code 6911 & 6912 bear 12% GST. Some of the goods include plates, bowls, cups, and other household items employed in dining and food preparation.
Can companies avail of Input Tax Credit (ITC) on ceramic items?
Yes, companies that buy ceramic items for resale or production can claim ITC for the GST paid. Careful documentation and following GST regulations are necessary to benefit from this opportunity.
How does GST on tiles impact the real estate sector?
The 18% GST tax on tiles raises the cost of construction, which affects homebuyers' and developers' pricing. As tiles are an essential part of flooring and interior design, the tax rate on tiles plays an important role in budgeting for projects.
What are the consequences if ceramic products are wrongly classified under the wrong tile HSN code?
Misclassification results in penalties, erroneous tax payments, and non-compliance, and hence proper classification is necessary for companies. Proper usage of HSN codes is necessary to prevent legal actions and ensure seamless business operations.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
