Cement HSN Code and GST Rate in India

If you sell, buy, or bill cement in India, one small field on your invoice decides whether your GST filing goes through cleanly: the HSN code. Put the wrong code on a cement invoice and you risk a mismatched GSTR-1, a blocked input tax credit for your buyer, and a penalty for incorrect invoicing.

This guide covers the exact HSN codes for every common form of cement — OPC, PPC, white cement, clinker, refractory cement, ready-mix concrete — along with the GST rate applicable in 2026, how many digits you must show on your invoice, and the input tax credit rules that trip up most construction businesses.

It is written for cement dealers, hardware and building-material traders, contractors, builders, and accountants who raise or verify these invoices every day.

Quick answer: Cement falls under HSN Chapter 25, most commonly HSN 2523, and attracts 18% GST following the rate rationalisation effective 22 September 2025.

What is the Cement HSN Code?

HSN stands for Harmonized System of Nomenclature — a globally standardised product-classification system developed by the World Customs Organization and adopted by India for GST. Every product has a numeric code that tells the tax system exactly what is being sold.

For cement, that code sits in Chapter 25 — Salt, sulphur, earths and stone, plastering materials, lime and cement. The main heading is:

• 2523 — Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers.

The code is read in pairs. In 25 23 29 10:

Not every cement-adjacent product sits in 2523, though — and that is where most classification errors happen. Cement articles (blocks, pipes, tiles) fall under Chapter 68, and ready-mix concrete falls under 3824.

If you are unsure which code fits a specific product you sell, you can look it up on the HSN Code Finder before you raise the invoice.

Why the Correct Cement HSN Code Matters

1. Your GSTR-1 must match your invoices. The HSN summary table in GSTR-1 is auto-compared against your invoice data. A mismatch invites a system-generated notice.

2. It fixes the tax rate. The HSN code determines the rate. Report cement as a Chapter 68 article and you may apply a different rate than the law prescribes.

3. It protects your buyer's input tax credit. Contractors buying cement in bulk claim large ITC amounts. If your invoice carries a wrong HSN or rate, their credit can be denied — and they will ask you to issue a credit note and re-invoice.

4. It is legally mandatory. Since 2022, HSN reporting is compulsory for all taxpayers, with the number of digits linked to turnover.

5. It matters for exports and e-way bills. Cement shipments almost always cross the e-way bill threshold, and the e-way bill carries the HSN code.

Cement HSN Code List with GST Rates (2026)

Note on the rate change: Cement was taxed at 28% for most of the GST era. Under the rate rationalisation effective 22 September 2025, cement moved to the 18% slab. If you are looking at an older article or an old purchase invoice showing 28%, that rate no longer applies to supplies made on or after that date.

How Many HSN Digits Do You Need on an Invoice?

The digit requirement depends on your aggregate annual turnover in the previous financial year:

For a small hardware store, 2523 on the invoice is compliant. A cement distributor above ₹5 crore must show 252329. An exporter must show the full 8-digit tariff item.

How to Apply the Cement HSN Code Correctly: Step by Step

Step 1: Identify the exact product form

Ask what is physically leaving your premises. Is it bagged cement powder, clinker, a cement pipe, or ready-mix concrete delivered by transit mixer? Each has a different code.

Step 2: Match the form to the right chapter

Cement as a binding material → 2523. A finished cement article (block, tile, pipe) → 6810. A cement mixture prepared for pouring → 3824. Refractory cement for furnace lining → 3816.

Step 3: Drill down to the sub-heading

Within 2523, choose by type: white cement (2523 21), OPC (2523 29 10), PPC (2523 29 20), slag (2523 29 30), aluminous (2523 30).

Step 4: Apply the rate and build the invoice line

Enter description, HSN, quantity, taxable value, and 18% GST — split as 9% CGST + 9% SGST for an intra-state sale, or 18% IGST for an inter-state sale.

Worked example: A dealer in Pune sells 500 bags of OPC at ₹380 per bag to a builder in Pune.

• Taxable value: 500 × ₹380 = ₹1,90,000
• HSN: 2523 29 10
• CGST @ 9%: ₹17,100
• SGST @ 9%: ₹17,100
• Invoice total: ₹2,24,200

If the same sale were made to a builder in Hyderabad, the tax line would instead read IGST @ 18% = ₹34,200.

Step 5: Report it in your GST returns

The invoice-level HSN flows into Table 12 (HSN summary) of GSTR-1. Reconcile that table against your sales register before filing.

Details Required on a Cement Invoice

• Supplier and recipient GSTIN, name and address
• Invoice number and date (consecutive, unique per financial year)
• HSN code at the required digit level
• Description of goods — mention the type: "OPC 53 Grade Cement, 50 kg bag"
• Quantity and unit — bags (BAG) or metric tonnes (MTS); use the UQC exactly as GSTN prescribes
• Taxable value, tax rate, and tax amount split into CGST/SGST or IGST
• Place of supply — critical for deciding intra-state vs inter-state
• E-way bill number, where the consignment value crosses ₹50,000
• Transporter details and vehicle number, since cement is almost always moved by road

Benefits of Using the Right Cement HSN Code

1. Clean return filing with fewer notices

When your HSN summary, invoice values and e-way bills tell the same story, the GST system has nothing to flag. Most classification notices are triggered by internal inconsistency, not by fraud.

2. Protected input tax credit down the chain

Cement is a high-value, high-volume purchase. Builders reconcile every rupee of ITC in GSTR-2B. A supplier who codes correctly becomes the supplier they keep buying from.

3. Accurate pricing and margin calculation

An 18% rate versus a wrongly applied 28% rate changes your landed cost by 10 percentage points. On a ₹50 lakh order, that is ₹5 lakh of working capital.

4. Smooth e-way bills and fewer transit detentions

The HSN on the e-way bill must match the invoice. Mismatches are a common reason for vehicle detention under Section 129, where the penalty is far higher than the tax involved.

5. Export readiness

The 8-digit code on a shipping bill drives customs duty, drawback and RoDTEP benefits. Getting the code right at the domestic stage means the same code carries through cleanly to export documents.

Common Mistakes to Avoid

Mistake 1: Using 2523 for cement products

Cement bricks, blocks, pavers, hollow blocks and cement pipes are not classified under 2523. They are articles of cement under 6810. Selling paver blocks under 2523 is a classification error even when the tax rate happens to be the same.

Mistake 2: Still charging 28%

The 28% rate applied to cement before 22 September 2025. Some ERP masters were never updated. Verify your item master rather than assuming.

Mistake 3: Treating ready-mix concrete like bagged cement

RMC is a prepared mixture under 3824 50 10, not a hydraulic cement under 2523. RMC also frequently involves a supply-and-pour arrangement that may amount to a works contract service, which is taxed as a service, not goods.

Mistake 4: Claiming ITC on cement used for your own building

Section 17(5)(d) blocks input tax credit on goods and services used to construct immovable property on your own account, even when used in the course of business. A factory building its own warehouse cannot claim ITC on the cement. A contractor buying cement to execute a works contract for a client can.

Mistake 5: Showing too few HSN digits

A ₹12 crore turnover dealer showing only 4 digits is non-compliant. Check your turnover slab at the start of every financial year.

Cement HSN Code vs Cement Article HSN Code

Both currently attract 18%, but the classification must still be correct. Rates change; classification is what the department audits.

Frequently Asked Questions

What is the HSN code of cement?

Cement is classified under HSN 2523. The 8-digit code depends on type — OPC is 2523 29 10, PPC is 2523 29 20, white cement is 2523 21 00.

What is the cement HSN code and GST rate in 2026?

HSN 2523, taxed at 18% GST for supplies made on or after 22 September 2025.

Is the GST on cement 18% or 28%?

It is 18%. The 28% rate applied to supplies made before 22 September 2025.

What is the HSN code for cement bricks and blocks?

6810 — articles of cement, concrete or artificial stone. Not 2523.

What is the HSN code for ready-mix concrete?

3824 50 10, at 18% GST.

Can I claim input tax credit on cement?

Yes, if the cement is used for making a taxable outward supply — for example, by a contractor executing a works contract. No, if it is used to construct immovable property on your own account, which is blocked under Section 17(5)(d).

What is the HSN code for white cement?

2523 21 00, at 18%.

Do I need 4, 6 or 8 digits on my cement invoice?

Four digits if your previous-year turnover is up to ₹5 crore, six digits above that, and eight digits for exports and imports.

What is the HSN code for cement clinker?

2523 10 00, taxed at 18%.

Is there GST on cement bags supplied to a government project?

Yes. Cement supplied to a government body is taxed normally at 18%; only specified works contract services carry concessional treatment, and that applies to the service, not to the cement itself.

Conclusion

Cement sits under HSN 2523 at 18% GST, but the code changes the moment the product changes form — 6810 for cement articles, 3824 for ready-mix concrete, 3816 for refractory cement. Getting that distinction right, showing the correct number of digits for your turnover slab, and remembering that ITC is blocked on own-account construction will keep your invoices audit-proof.

Next step: Check the exact code for every item you sell using the HSN Code Finder, then update your accounting software's item master so the correct HSN and rate flow automatically into every invoice.