--- title: "New GST on Sand 2026: 5% Rate on River Sand, Silica Sand" description: "New GST rate on sand in 2026 is 5% on river sand, quarry sand and silica sand products. Busy helps you apply the right GST rate on every invoice." canonical: "https://busy.in/gst-rates/sand/" author: "Nitin Bansal" published: "2025-05-15T11:35:31.000Z" category: "GST Rates" --- - The GST rate for natural, river, silica, quartz, and manufactured sand in India is 5%, while fly ash or crushed sand mix is taxed at 18%. - Sand suppliers and construction businesses must register for GST if their turnover exceeds ₹40 lakhs and use HSN Code 2505 on invoices. - Misclassification of sand types can lead to penalties, and it's crucial to differentiate between natural and processed sand for GST purposes. - Mining royalties for sand extraction are subject to GST, and transport costs may incur additional GST charges. - Businesses can claim Input Tax Credit (ITC) on sand used for business if proper invoices are maintained. # New GST on Sand in India: Natural Resources and Taxation Sand is a critical raw material used in construction, plastering, and infrastructure development. With the implementation of the Goods and Services Tax (GST), sand suppliers, construction businesses, and buyers must understand how [**gst on sand**](https://busy.in/gst/) is applied across different categories and uses. ## New GST Rate on Sand in India The Government of India is updating GST rates effective after **22 Sep 2025**. Sand is treated as a natural resource; rates below reflect the **expected new GST rates** (no compensation cess). | Type of Sand | HSN Code | New GST Rate | | --- | --- | --- | | Natural sand (excluding metal-bearing) | 2505 | 5% | | River sand (unprocessed) | 2505 | 5% | | Silica sand and quartz sand | 2505.10 | 5% | | Manufactured sand (M-sand) | 2505 | 5% | | Fly ash or crushed sand mix | 6815 | 18% | ## Old GST Rate on Sand ### (Old GST Rates – Applicable Until 21st September) Under GST, sand is treated as a natural resource and its taxation depends on the type and usage. | Type of Sand | HSN Code | Old GST Rate | | --- | --- | --- | | Natural sand (excluding metal-bearing) | 2505 | 5% | | River sand (unprocessed) | 2505 | 5% | | Silica sand and quartz sand | 2505.10 | 5% | | Manufactured sand (M-sand) | 2505 | 5% | | Fly ash or crushed sand mix | 6815 | 18% | ## GST on River Sand River sand, which is naturally sourced and unprocessed, is taxed at a concessional rate. - **River sand GST rate:** 5% - HSN Code: 2505 - Applicable for sand used in construction, levelling, and landscaping Live Demo Available Today ## Allocate Sand Costs to Site-Wise Construction Cost Centres Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST on M-Sand and Processed Sand Manufactured sand (M-sand) is used as a substitute for river sand, especially where sand mining is restricted. - M-sand GST Rate: 5% - If mixed with cement, fly ash, or chemically processed: 18% ## GST Compliance for Sand Suppliers If you’re in the sand supply business: - GST registration required if turnover exceeds ₹40 lakhs - Use HSN Code 2505 on GST invoices - File regular returns - Mention transportation or royalty charges separately (which may attract additional GST) - [Input Tax Credit](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) (ITC) is available on inputs used for sand extraction, transport vehicles, machinery maintenance, etc. ## Challenges in Sand Taxation - **Mining Royalties:** GST applies to mining rights and royalties paid to the government for extraction - **Transport GST:** 5% or 12% based on transporter category - **Misclassification:** Misreporting of processed sand as natural sand may lead to notices or penalties ## Conclusion Understanding the **gst on sand** helps suppliers, builders, and contractors manage project costs better and comply with tax rules. With sand being such a foundational material, knowing how it’s taxed is essential for smooth operations. ## About the author **Nitin Bansal** I am a Fellow Chartered Accountant (FCA) and LLB graduate with 10 years of experience in corporate auditing, taxation, and financial consulting. My expertise includes corporate audits, income tax planning, HSN code classification, and GST rate advisory. Through my blogs and articles, I aim to simplify corporate taxation, auditing, and GST compliance, making financial matters more accessible for professionals and business owners. ## Frequently asked questions ### What is the GST rate on sand in India? The GST rate on natural sand is **5%**, under HSN Code 2505. ### Is GST applicable on river sand? Yes. The river sand GST rate is **5%**, if sold without processing or additives. ### Does processed sand have a higher GST? Yes. If sand is mixed with cement or fly ash, it may attract **18%** GST. ### Can a construction company claim ITC on sand purchases? Yes, if the sand is used for business purposes and proper invoices are maintained. ### Are mining royalties for sand subject to GST? Yes. 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