GST Rate on Cement: Down from 28% to 18%
GSTZone Desk · Updated 2026
Short answer
Cement moved from 28% GST to 18% GST with effect from 22 September 2025, as part of the broader rate rationalisation that collapsed most of the old 28% bracket.
In detail
Cement sat in the highest GST bracket, 28%, for the entire life of GST until the September 2025 reform. That reform folded most of the 28% category — the goods that weren’t specifically flagged as luxury or sin items — down into the new 18% standard slab, and cement was one of the largest, most visible items in that move.
For a business buying cement as an input — a construction company, a contractor — this directly cuts the upfront GST cash outflow on every bag purchased, which also eases working capital pressure compared to the old 28% rate.
Whether this actually makes construction cheaper for a homebuyer is a separate question from the rate cut itself, and worth being honest about.
GSTZone tip
Question 68 in this series covers the ‘will it actually get cheaper’ angle in more detail — the tax cut is real and legally binding, but whether it reaches the final price depends on whether suppliers pass it on, which isn’t something GST law itself enforces anymore.
Related questions
Did the rate change apply to all types of cement equally?+
Yes — the rate cut to 18% applies across cement generally under its GST heading, not selectively to particular grades or brands.
What was cement’s HSN classification affected by this change?+
Cement falls under Chapter 25 of the GST tariff (HSN 2523); the classification itself didn’t change, only the rate notified against it.
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