The cement hsn code is 2523, and every common type of cement sold in India, from OPC and PPC to white cement and clinker, carries GST at 18%. Before the two-slab reform of 22 September, cement sat in the 28% slab, so old quotations, rate cards and billing masters may still show the higher figure.
This page gives the 8 digit codes inside heading 2523, the products people often bill under the wrong code (ready mix concrete, cement bricks, cement sheets), a sample invoice line, and how input tax credit works for builders and dealers. For the full building materials list, start from the construction material codes.
Cement: codes and GST rates
Item / HSN / GST- Ordinary Portland cement (OPC 43 and 53 grade)18%Bags or bulk, same rate for every grade
- Portland pozzolana cement (PPC)18%Fly ash blended cement
- Portland slag cement (PSC)18%Blast furnace slag blend
- White cement, coloured or not18%Also used as a base for wall putty
- Cement clinker18%Sold between cement plants and grinding units
- Aluminous and high alumina refractory cement18%Furnace and kiln linings
- Ready mix concrete (RMC)18%Not under 2523: it is a ready-to-use concrete
- Cement bricks and concrete blocks18%Articles of cement fall in heading 6810
- Fibre cement and asbestos cement sheets18%Roofing and wall sheets
Quick facts
HSN heading
2523 (Chapter 25: salt, earths, stone, lime and cement)GST rate
18%: 9% CGST + 9% SGST, or 18% IGST between statesRate before the reform
28%Digits to print
2523 up to Rs 5 crore turnover, 6 digits such as 252329 above itOfficial entry
Schedule II, S. No. 9 of notification 9/2025-Central Tax (Rate)Common wrong code
3824 is for ready mix concrete, not bagged cement
Cement hsn code 2523 and what it covers
Heading 2523 covers hydraulic cements: products that set and harden with water. The six digit sub-heading tells the type, and the eight digit tariff item narrows it to the exact product. A dealer who sells only grey cement in bags will mostly use one or two of these lines.
| Code | Product |
|---|---|
| 2523 10 00 | Cement clinker |
| 2523 21 00 | White cement |
| 2523 29 10 | Ordinary Portland cement |
| 2523 29 30 | Portland pozzolana cement |
| 2523 29 40 | Portland slag cement |
| 2523 29 90 | Other Portland cement |
| 2523 30 00 | Aluminous cement |
| 2523 90 | Other hydraulic cements, including high alumina refractory cement |
The grade (33, 43 or 53) and the brand never change the code. Bag size does not matter either: a 50 kg bag and a bulker load both go under the same tariff item.
GST on cement after the 22 September cut
GST on cement fell from 28% to 18% when the two-slab structure came in. The entry is S. No. 9 of Schedule II in notification 9/2025-Central Tax (Rate), which lists Portland, aluminous, slag and similar cements, coloured or not, and clinker. Schedule II is the 9% central tax list, so the GST on the bill is 9% CGST plus 9% SGST for a sale inside the state, or 18% IGST when the cement crosses a state border.
There is no lower rate for any cement by grade, use or buyer. A house owner, a contractor and a government project all pay the same 18% on the cement itself. What changes for a builder is the rate on the construction service, covered on the SAC 9954 construction services page.
Products that look like cement but take another code
Most billing mistakes in this trade come from putting everything made with cement under 2523. Check the product before you pick the line.
- Ready mix concrete is a ready-to-use concrete, so it goes under 3824 50 10, not 2523. It is also 18%, but the HSN on the e-way bill must match.
- Cement bricks, paver blocks and concrete blocks are articles of cement under 6810 at 18%. Clay and fly ash bricks have their own entries; see bricks and blocks GST.
- Fibre cement roofing sheets fall under 6811 at 18%.
- Wall putty and POP are not cement even when white cement is the base; they are covered on the wall putty code page.
How to write cement on a tax invoice
A dealer with turnover up to Rs 5 crore prints the 4 digit heading on B2B invoices. Above Rs 5 crore, print at least 6 digits. Many dealers simply print the full 8 digit code, which is always accepted.
Sample invoice line (sale inside the state): PPC cement, 50 kg bags, 200 bags, HSN 2523 29 30. Taxable value Rs 70,000. CGST 9% Rs 6,300. SGST 9% Rs 6,300. Invoice total Rs 82,600.
When the load goes out of state, the same line shows IGST 18% of Rs 12,600 instead of the two halves. The e-way bill carries the same HSN and value, and the GSTR-1 HSN summary groups all cement lines under the code you printed.
Input tax credit for dealers and builders
A registered dealer or contractor who pays 18% on cement can take input tax credit of that tax when the cement is used for taxable outward supplies. Two common exceptions are worth knowing:
- A promoter who sells residential flats at the 1% or 5% rate cannot take credit on inputs such as cement for those flats.
- Cement used to build your own office, factory shed or other immovable property for your own business is blocked from credit under section 17(5), except for plant and machinery.
The rate cut from 28% to 18% did not change these rules; it only lowered the tax paid up front.
Cement gst rate problems and fixes
| Problem | Fix |
|---|---|
| Billing software still charges 28% | Update the item master to 18% for every 2523 line |
| RMC billed under 2523 | Change the item to 3824 50 10; the rate stays 18% |
| Cement bricks billed as cement | Use 6810; check the rate in that entry |
| IGST charged on a local sale | Use CGST and SGST when supplier and place of supply are in the same state |
This page explains the general position from the current rate notification. Entries can be amended, so confirm the rate in the latest notification or the GST portal before you bill, and ask a GST practitioner or chartered accountant about your own contract or project.
Frequently asked questions
What is the HSN code for cement?
Cement falls under heading 2523. Ordinary Portland cement is 2523 29 10, Portland pozzolana cement 2523 29 30, Portland slag cement 2523 29 40 and white cement 2523 21 00.
What is the GST rate on cement now?
Cement is taxed at 18% since 22 September, down from 28%. Inside a state the bill shows 9% CGST and 9% SGST.
Is the 2523 hsn code gst rate different for white cement?
No. White cement sits in the same entry of Schedule II, so it is also 18%. Only the 8 digit code differs.
What is the HSN code for ready mix concrete?
Ready mix concrete is 3824 50 10, outside the cement heading. Its rate is 18%, the same as cement, but the code on the invoice and e-way bill should be 3824.
Can I use a 4 digit cement hsn code on my invoice?
Yes, if your turnover in the previous year was up to Rs 5 crore and the sale is to a business. Above that, print at least 6 digits, such as 252329 for OPC and PPC.