AAR Tamil Nadu Clarifies HSN Code and GST Applicability for Fly Ash Bricks
The present application (Form GST ARA-01), dated 03.03.2025, has been filed by Thesu Sankar (applicant) before the Authority for Advance Ruling, Tamil Nadu No. 207, 2nd Floor, Papjm Building, No. 1, Greams Road, Chennai 600 006. The bench hearing the case comprised of Shri C.Thiyagarajan, I.R.S., Additional Commissioner/Member (CGST) and Shri B.Suseel Kumar, B.E., MBA., Joint Commissioner/Member (SGST).
The applicant is registered under the GST Act, with GSTIN no. 33BGOPS7967M1ZA and is located at 1/ B4, Village Road, Balaji Nagar Extension, Puzhuthivakkam, Chennai – 600091. The company is involved in the business of manufacturing ‘Fly Ash Bricks’ and ‘Cement Bricks’. In the past, the applicant had made a payment of Rs. 5,000 each under sub-rule (1) of Rule 104 of the CGST Rules, 2017 and the TNGST Rules, 2017.
Questions Asked by Applicant:
Seeking the present Authority For Advance Ruling (AAR), Tamil Nadu (Advance Ruling No. 34/ARA/2025), dated 01.09.2025, the applicant has asked the following questions:
Question 1. What is the correct Harmonised System of Nomenclature (HSN) Code for Fly ash bricks made with more than 51% fly ash, and how is GST applicable to these bricks under this classification?
Question 2. What is the applicable GST rate for fly ash bricks containing more than 51% fly ash? Is there any difference in the rate as compared to bricks made with exactly 51% fly ash?
Question 3. Are Fly ash bricks containing more than 51% fly ash eligible for any exemption or reduced GST rate due to the use of recycled or sustainable materials such as fly ash?
Question 4. Can a manufacturer of Fly ash bricks with more than 51% fly ash claim Input Tax Credit (ITC) on the purchase of raw materials such as fly ash, clay and other materials used to produce these bricks?
Question 5. Is the sale of fly ash bricks containing more than 51% fly ash used in construction projects, including residential and commercial buildings, subject to GST under the normal taxation system or reverse charge?
Question 6. Are Fly ash bricks made with more than 51% fly ash eligible for any special GST exemption or reduced rate when sold to the Government or Public Sector Undertakings (PSU) for public infrastructure projects?
Question 7. Can a manufacturer of Fly ash bricks with more than 51% fly ash opt for the GST composition scheme, provided the turnover is below the prescribed limit and if so, what would be the implications for the GST rate?
Question 8. What is the GST rate on fly ash as a raw material used in the manufacture of Fly Ash Bricks, and does the GST treatment differ when fly ash constitutes more than 51% of the product?
Answers Given by AAR Tamil Nadu:
The authority for advance ruling (AAR) has given the following answers to the questions asked by the applicant:
Answer 1: In answer to the question first, the authority said the correct Harmonised System of Nomenclature (HSN) Code for Fly ash bricks made with more than 51% fly ash is 6815 99 10 and under this code, the supplier has to pay the tax liability as per S. No. 176B of Schedule II to the Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017.
Answer 2: The overall applicable GST rate for fly ash bricks containing more than 51 % fly ash is 12% (CGST 6% + SGST 6%) with the availment of ITC (Input Tax Credit). The applicant can pay the 6% GST (CGST 3% + SGST 3%) concessional rate without availment of ITC, abiding by the conditions prescribed in Notification 2/2022-Central Tax (Rate) dated 31.03.2022, as amended.
Answer 3: No, Fly ash bricks containing more than 51% fly ash are not eligible for any exemption or reduced GST rate due to the use of recycled or sustainable materials such as fly ash.
Answer 4: The applicant, as a manufacturer of fly ash bricks, is eligible to claim Input Tax Credit (ITC) on the purchase of raw materials like fly ash, clay and other materials used for the purpose of making these bricks, if they are eligible for it. The applicant is required to pay a total GST of 12% (CGST 6% + SGST 6%) when such ITC is claimed.
Answer 5: The sale of fly ash bricks used in construction projects, including residential and commercial buildings, is subject to GST under the normal taxation system or forward charge and not under reverse charge. The supplier of the fly ash bricks needs to pay GST.
Answer 6: No, Fly ash bricks made with more than 51% fly ash is not eligible for any special GST exemption or reduced rate when sold to Government or Public Sector Undertakings (PSU) for public infrastructure projects.
Answer 7: No, a manufacturer of Fly ash bricks with more than 51% fly ash is not eligible to opt for the GST composition scheme provided the turnover is below the prescribed limit and if so, what would be the implications for the GST rate?
Answer 8: The authority said that this question is out of the scope of advance ruling; hence, the authority did not answer this question.
Refer to the official advance ruling for complete information.
Citation: Thesu Sankar (AAR Tamil Nadu); Advance Ruling No. 34/ARA/2025; 01/09/2025
