Bricks to continue under GST 2.0 special composition scheme at 12%

The GST Council has kept the special composition scheme for bricks unchanged, retaining 6% without ITC and 12% with ITC, with a Rs 20 lakh threshold, under GST 2.0

The Goods and Services Tax (GST) Council has retained the existing levy on bricks under the special composition scheme introduced in April 2022. Under the scheme, bricks (other than sand lime bricks) continue to attract GST at 6 per cent without input tax credit (ITC) and 12 per cent with ITC, with a lower registration threshold of Rs 20 lakh instead of Rs 40 lakh applicable to goods. 

“The GST Council in its 56th meeting held on 3 September 2025 did not recommend any change to the special composition scheme rates except on sand lime bricks, on which the GST rate has been recommended to be reduced from 12 per cent to 5 per cent. Hence, all kinds of bricks except sand lime bricks continue to attract GST of 6 per cent without ITC and 12 per cent with ITC, with a threshold limit of Rs 20 lakh,” the Finance Ministry said in the FAQs. 

 

A notification issued by the Ministry of Finance on 17 September 2025 further cemented the continuity of these rates under GST 2.0, making clear that the special composition scheme will continue for the brick sector. “A special composition scheme is a sector-specific concessional levy under GST, recommended by the GST Council for industries with high tax evasion risks or unique compliance challenges. A scheme like this may prescribe differential options—such as a reduced rate without ITC or the option to pay the regular rate with ITC. The special scheme on bricks is one such example,” said a government official who did not want to be named.