Cement HSN Code: Understanding HSN Classifications for Cement Products
Cement is one of the most important building materials in India. To raise correct bills and follow GST rules, you must know the correct HSN code for cement and cement related products.
This guide explains the main cement HSN code, the codes for cement bricks, sheets and cement bags, and how these HSN codes link with GST rates for traders, manufacturers, builders and retailers
What Is the HSN Code for Cement?
HSN stands for Harmonised System of Nomenclature. It is a global system that groups goods under numbers so that tax rates can be applied in a uniform manner.
For normal cement, the main HSN code in India is 2523. This heading covers Portland cement , aluminous cement, slag cement and other similar hydraulic cements. The cement may be in powder form or in the form of clinkers.
Under the latest GST structure, cement under HSN 2523 is generally taxed at 18% for most regular supplies. Earlier cement was taxed at a higher slab, but now it usually falls in the 18% slab in line with the new three slab GST system.
In simple words, if you are selling ordinary cement bags for construction use, in most cases you will classify the item under HSN 2523 and apply the 18% GST rate unless a specific notification says otherwise.
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 2523 | Cement | Ordinary Portland, slag, Pozzolana and similar cement | 18% |
| 2523 | White cement | White Portland type cement | 18% |
| 6810 | Cement articles | Cement bricks, blocks, tiles, slabs, sheets | 18% |
| 3923 | Plastic packing bags | Plastic woven sacks and bags for packing cement | 18% |
| 6305 | Textile packing bags | Woven polypropylene or polyethylene sacks for packing cement | 5% or 18% |
HSN Code for Cement Bricks and Sheets
Cement bricks and cement sheets are not classified in the same heading as basic cement. They are treated as finished articles and mostly fall under chapter 68 of the HSN list.
The common heading for such items is HSN 6810 . This heading covers articles of cement, of concrete or of artificial stone. It includes cement bricks, blocks, tiles, slabs and many prefabricated items used in building work.
For example, solid cement bricks used for walls and foundations are normally classified under the detailed lines of 6810. Roofing sheets and structural parts made mainly from cement or concrete also remain inside this heading.
In most cases these cement bricks and sheets also attract GST around 18%, similar to other building material products, unless a special entry gives a different treatment.
HSN Code for Cement Bags, Bricks, and Sheets
The term cement bag can cause confusion. It can mean the filled cement bag that you sell to a customer or it can mean the empty packing bag purchased from a supplier.
The cement inside a bag is still cement under HSN 2523 and is taxed as cement. The bag does not change the HSN code of the cement itself.
Empty cement packing bags have their own HSN code based on the material used.
Plastic woven sacks and bags that are used for packing cement fall under chapter 39 which covers plastic items used for packing of goods. Many of these bags are placed in the 3923 series of HSN codes.
Textile based sacks and bags such as woven polypropylene or polyethylene bags are treated as textile articles and usually fall under chapter 63 , for example in the 6305 series of HSN codes.
Cement bricks and sheets as explained earlier generally fall under HSN 6810 because they are ready to use articles made from cement or concrete.
Because cement, cement bricks and empty cement bags sit in different chapters, they clearly do not share the same HSN code even though they are connected products. For correct GST treatment you should decide whether you are billing cement itself, a cement based article like a brick or sheet, or a packing material such as a bag and then apply the correct HSN code.
Cement GST Rates and HSN Code Classification
After the recent GST changes, most goods fall mainly in the five percent slab, the 18% slab or the forty percent slab for a small list of luxury or sin goods. Cement and most cement based products are placed in the 18% slab.
Here is a simple way to understand common HSN codes and usual GST treatment for cement and cement related goods.
- HSN 2523 covers ordinary Portland cement, slag cement, Pozzolana cement and similar hydraulic cements. The usual GST rate is around 18% for most regular supplies.
- HSN 6810 covers cement bricks, blocks, tiles, slabs and other articles of cement or concrete. These items also generally fall in the 18% slab.
- HSN 3923 series covers many plastic sacks and bags used for packing cement and other goods. These are mostly taxed around 18% as packing material.
- HSN 6305 and related codes cover textile based sacks and bags including woven polypropylene packing bags. These can be taxed at five percent or 18% depending on the exact entry and conditions mentioned in the rate notification.
You should always match the actual description of your item with the wording of the HSN entry. Check details such as the material of the product, its use, whether it is a basic material or a finished article and whether it is a packing item.
If the wording of the rate entry is not clear for your item, it is safer to read the latest GST notifications or take advice from a tax expert instead of guessing the rate.
How HSN Codes Impact GST for Cement Industry?
Correct HSN classification is very important for the cement industry because cement and cement based products are supplied in very large volumes and even a small mistake can repeat on many invoices.
First, the correct HSN code fixes the GST rate. If you use a cement HSN code that has a lower rate than what is actually applicable, there can be a future tax demand with interest and penalties. If you use a higher rate, your product becomes costlier and you may lose customers.
Second, correct HSN codes support proper input tax credit. Builders, contractors and dealers claim credit on cement purchases. If the supplier uses a wrong code or wrong rate, there can be confusion during audits and assessments.
Third, most businesses use billing and accounting software where HSN codes are mapped to GST rates. If the mapping for cement, cement bricks or cement bags is wrong, then every sale bill may show the wrong tax rate until the mistake is corrected.
To manage these risks, cement businesses should maintain an internal HSN master that clearly lists all cement products, cement based articles and packing materials along with their correct HSN codes and usual GST rates.
Conclusion
Knowing the correct cement HSN code is essential for every business that makes, trades or uses cement and cement based products. Basic cement is usually classified under HSN 2523, while cement bricks, sheets and empty packing bags move to different chapters like 6810, 3923 or 6305 based on their nature.
When you match each product with the right HSN code and GST rate, your invoices become accurate, your input tax credit remains safe and the chances of future disputes and penalties reduce. A clear understanding of cement HSN codes makes daily billing easier and helps your business stay fully compliant with GST rules.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the HSN code for cement in India?
The main HSN code for cement in India is 2523. This heading covers ordinary Portland cement, slag cement, Pozzolana cement and other similar hydraulic cements in powder form or as clinkers.
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How does the HSN code affect GST rates for cement products?
The HSN code links each cement product to a specific GST entry. Cement under HSN 2523 usually attracts 18% GST, while cement bricks and sheets under 6810 and packing bags under 3923 or 6305 may also fall in the 18% slab or sometimes five percent for some textile bags. If the HSN code is wrong, the GST rate applied can also be wrong.
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What is the HSN code for white cement?
White cement is generally classified as a specific type of cement under the detailed lines of heading 2523. In practice it is treated as a variety of Portland cement and follows the same broad HSN chapter as other cements. You should check the detailed sub code for the exact product you sell.
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What is the GST rate for cement and its products under HSN code?
For normal cement under HSN 2523, the usual GST rate is around 18% for most supplies as per the latest rate structure. Many cement based products under 6810 and packing bags under 3923 also fall in the 18% slab, while some textile sacks under 6305 can attract five percent or 18% depending on the conditions in the notification.
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Are cement bags and cement bricks classified under different HSN codes?
Yes, they are placed in different chapters. Cement bricks and similar articles normally fall under HSN 6810 as articles of cement or concrete. Empty cement packing bags are placed under chapter 39 for plastic bags or chapter 63 for textile sacks. The cement itself remains under HSN 2523. Because of this they can have different GST treatments.