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Construction28% GST RateUpdated July 2026

Calculate GST for Cement

Calculate GST on portland cement, aluminous cement, and hydraulic cement for building construction.

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Quick Summary

HSN/SAC Code#2523
Tax CategoryConstruction
ITC EligibilityEligible for commercial building contractors, blocked for private home builders
Effective DateJuly 1, 2017
Applicable Tax
28%
Standard GST RateHSN Code 2523

GST Rate Explanation

All types of cement (HSN 2523) are taxed at the highest standard slab of 28% by the GST Council, making it one of the highly taxed components of real estate development.

Calculation Mode
Net Amount (Before Tax)₹10,000.00
CGST (Central Tax) (14.0%)₹1,400.00
SGST (State Tax) (14.0%)₹1,400.00
Total GST (28%)₹2,800.00
Gross Amount₹12,800.00

Visual Tax Split & Collection Rules

Intrastate Split Allocation
CGST (Central Tax): 14.0%
SGST (State Tax): 14.0%

Within State (CGST + SGST)

When supply is within the same state (intrastate), the CGST and SGST are collected. The total tax is split 50/50 between Central and State governments.

Across States (IGST)

When supply spans across states (interstate), a single Integrated GST of 28% is collected in full by the Central government before allocation.

GST Rate Structure Slabs

Tax SlabCGST (Central)SGST (State)IGST (Integrated)Notes
0%0.0%0.0%0.0%Exempted / Nil rated goods
5%2.5%2.5%5.0%Essential items & services
12%6.0%6.0%12.0%Standard reduced rate items
18%9.0%9.0%18.0%Standard general rate items
28%14.0%14.0%28.0%Luxury / Sin goods & services

GST Calculation Examples

Single bag of Portland Cement

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹450.00

GST (28%): ₹126.00

Total: ₹576.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹450.00

Base Amount: ₹351.56

GST Included: ₹98.44

Bulk cement delivery for house structure

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹90,000.00

GST (28%): ₹25,200.00

Total: ₹1,15,200.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹90,000.00

Base Amount: ₹70,312.50

GST Included: ₹19,687.50

Frequently Asked Questions

Government References & Notifications

Tax Disclaimer Notice

Cement attracts the highest slab of 28% as it is classified as a non-essential building material.

Last updated: July 2026