The Real Issue Behind the Latest GST Protest
Brick manufacturers across Tamil Nadu are raising a strong complaint:
Why should bricks be taxed at 12%, while marble and granite are taxed at just 5%?
According to the Tamil Nadu Bricks Manufacturers Association, this tax imbalance is increasing cost pressure, affecting small and medium-scale brick units, and disrupting pricing across the construction industry.
🔎 Why Brick Manufacturers Are Protesting
1. Unequal Tax Slabs
- Marble, granite, and several other construction materials fall under 5% GST.
- Bricks and fly-ash bricks are pushed into a 12% slab (6% + ITC structure).
- Manufacturers say this creates an unfair playing field in the construction ecosystem.
2. Pre-GST “Compounding System” Was Easier
Before GST, many states — including Tamil Nadu, UP, Bihar and others — followed a simple monthly compounding tax for brick kilns.
Manufacturers requested something similar under GST.
But instead of a simpler structure, they now deal with:
- Higher slab
- Higher input cost
- More compliance
3. Increased Production Cost
Brick manufacturers argue:
- Bricks are a basic essential for affordable housing, not a luxury item.
- A 12% GST pushes up:
- Brick price per 1,000 units
- Transportation cost
- Construction cost for end buyers
This hits both builders and individual home buyers, especially in non-urban regions.
🏗️ How This Affects Property Buyers in Tamil Nadu
Though GST is paid by manufacturers and contractors, the effect naturally travels down to residential buyers:
• Higher construction cost
Especially for low-cost homes, farmhouses, and rural houses where brick usage is high.
• Reduced material affordability
Bricks are one of the most fundamental building materials. A higher slab makes no sense to the industry.
• Regional price increases
Districts like Salem, Namakkal, Trichy, Erode, Theni, and Tirunelveli — where brick clusters operate — see direct price fluctuations.
📢 What Manufacturers Want
The Tamil Nadu Bricks Manufacturers Association has clearly asked the GST Council for:
1. A uniform 5% GST slab – equal to marble/granite
They argue that if luxury materials can be at 5%, basic building materials must not be taxed higher.
2. Restoration of pre-GST compounding system
A simple, fixed monthly tax is easier for thousands of small brick kilns.
3. Centre + State intervention
The association wants both governments to review the structure and offer relief to an already struggling sector.
💡 Impact on Real Estate Stakeholders
Brick price fluctuations influence:
- Builder quotations
- Home construction budgets
- Labour contracts
- Tender calculations for government projects
Buyers and investors can track cost escalations by verifying project approvals, materials, and construction schedules.