The Central Board of Indirect Taxes and Customs (CBIC) has notified that brick kilns can opt for a composition scheme to pay a 6 per cent GST without input tax credit (ITC) beginning Friday, higher than 5 per cent earlier.
The businesses who do not wish to opt for the composition scheme would be subject to 12 per cent Goods and Services Tax (GST) with ITC.
A notification issued by the Board on 31st March provided that building bricks, earthen or roofing tiles, fly ash bricks and blocks, bricks of fossil meals can opt for a composition scheme. So far, manufacturing and trading of bricks were chargeable at 5 per cent GST, and businesses were allowed to claim credit on inputs.
The government on March 31 notified the GST rates that would be applicable from April 1. As per the notification,
The GST Council had in September last year decided to bring brick kilns under a special composition scheme from April 1, 2022.
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