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	<title>real estate costs &#8211; Chennai&#039;s Verified.RealEstate Community</title>
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	<title>real estate costs &#8211; Chennai&#039;s Verified.RealEstate Community</title>
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		<title>🧱 Is 12% GST Hurting Brick Prices in TN? Manufacturers Say Yes</title>
		<link>https://community.verified.realestate/article/%f0%9f%a7%b1-is-12-gst-hurting-brick-prices-in-tn-manufacturers-say-yes/</link>
					<comments>https://community.verified.realestate/article/%f0%9f%a7%b1-is-12-gst-hurting-brick-prices-in-tn-manufacturers-say-yes/#respond</comments>
		
		<dc:creator><![CDATA[Saranya Manoj]]></dc:creator>
		<pubDate>Sat, 15 Nov 2025 04:49:37 +0000</pubDate>
				<category><![CDATA[Community and Social Impact]]></category>
		<category><![CDATA[Economic and Financial News]]></category>
		<category><![CDATA[Government Policies and Regulations]]></category>
		<category><![CDATA[Industry Insights and Expert Opinions]]></category>
		<category><![CDATA[Affordable Housing]]></category>
		<category><![CDATA[brick kiln industry]]></category>
		<category><![CDATA[bricks]]></category>
		<category><![CDATA[building materials]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[GST reform]]></category>
		<category><![CDATA[real estate costs]]></category>
		<category><![CDATA[real estate market trends]]></category>
		<category><![CDATA[Tamil Nadu construction]]></category>
		<guid isPermaLink="false">https://community.verified.realestate/?p=12257</guid>

					<description><![CDATA[When GST hits bricks, it hits affordable housing too.]]></description>
										<content:encoded><![CDATA[
<h3 class="wp-block-heading"><strong>The Real Issue Behind the Latest GST Protest</strong></h3>



<p class="wp-block-paragraph">Brick manufacturers across Tamil Nadu are raising a strong complaint:<br><strong>Why should bricks be taxed at 12%, while marble and granite are taxed at just 5%?</strong></p>



<p class="wp-block-paragraph">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.</p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<h3 class="wp-block-heading"><strong>🔎 Why Brick Manufacturers Are Protesting</strong></h3>



<h4 class="wp-block-heading"><strong>1. Unequal Tax Slabs</strong></h4>



<ul class="wp-block-list">
<li>Marble, granite, and several other construction materials fall under <strong>5% GST</strong>.</li>



<li>Bricks and fly-ash bricks are pushed into a <strong>12% slab</strong> (6% + ITC structure).</li>



<li>Manufacturers say this creates an <em>unfair playing field</em> in the construction ecosystem.</li>
</ul>



<h4 class="wp-block-heading"><strong>2. Pre-GST “Compounding System” Was Easier</strong></h4>



<p class="wp-block-paragraph">Before GST, many states — including Tamil Nadu, UP, Bihar and others — followed a <strong>simple monthly compounding tax</strong> for brick kilns.<br>Manufacturers requested something similar under GST.</p>



<p class="wp-block-paragraph">But instead of a simpler structure, they now deal with:</p>



<ul class="wp-block-list">
<li>Higher slab</li>



<li>Higher input cost</li>



<li>More compliance</li>
</ul>



<h4 class="wp-block-heading"><strong>3. Increased Production Cost</strong></h4>



<p class="wp-block-paragraph">Brick manufacturers argue:</p>



<ul class="wp-block-list">
<li>Bricks are a <strong>basic essential for affordable housing</strong>, not a luxury item.</li>



<li>A 12% GST pushes up:
<ul class="wp-block-list">
<li>Brick price per 1,000 units</li>



<li>Transportation cost</li>



<li>Construction cost for end buyers</li>
</ul>
</li>
</ul>



<p class="wp-block-paragraph">This hits both <strong>builders</strong> and <strong>individual home buyers</strong>, especially in non-urban regions.</p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<h3 class="wp-block-heading"><strong>🏗️ How This Affects Property Buyers in Tamil Nadu</strong></h3>



<p class="wp-block-paragraph">Though GST is paid by manufacturers and contractors, the effect naturally travels down to residential buyers:</p>



<h4 class="wp-block-heading"><strong>• Higher construction cost</strong></h4>



<p class="wp-block-paragraph">Especially for low-cost homes, farmhouses, and rural houses where brick usage is high.</p>



<h4 class="wp-block-heading"><strong>• Reduced material affordability</strong></h4>



<p class="wp-block-paragraph">Bricks are one of the most fundamental building materials. A higher slab makes no sense to the industry.</p>



<h4 class="wp-block-heading"><strong>• Regional price increases</strong></h4>



<p class="wp-block-paragraph">Districts like Salem, Namakkal, Trichy, Erode, Theni, and Tirunelveli — where brick clusters operate — see direct price fluctuations.</p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<h3 class="wp-block-heading"><strong>📢 What Manufacturers Want</strong></h3>



<p class="wp-block-paragraph">The Tamil Nadu Bricks Manufacturers Association has clearly asked the GST Council for:</p>



<h4 class="wp-block-heading"><strong>1. A uniform 5% GST slab – equal to marble/granite</strong></h4>



<p class="wp-block-paragraph">They argue that if luxury materials can be at 5%, basic building materials must not be taxed higher.</p>



<h4 class="wp-block-heading"><strong>2. Restoration of pre-GST compounding system</strong></h4>



<p class="wp-block-paragraph">A simple, fixed monthly tax is easier for thousands of small brick kilns.</p>



<h4 class="wp-block-heading"><strong>3. Centre + State intervention</strong></h4>



<p class="wp-block-paragraph">The association wants both governments to review the structure and offer relief to an already struggling sector.</p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<h3 class="wp-block-heading"><strong>💡 Impact on Real Estate Stakeholders</strong></h3>



<p class="wp-block-paragraph">Brick price fluctuations influence:</p>



<ul class="wp-block-list">
<li>Builder quotations</li>



<li>Home construction budgets</li>



<li>Labour contracts</li>



<li>Tender calculations for government projects</li>
</ul>



<p class="wp-block-paragraph">Buyers and investors can track cost escalations by verifying project approvals, materials, and construction schedules.</p>



<p class="wp-block-paragraph"></p>



<p class="wp-block-paragraph"></p>
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