All India Brick and Tile Manufacturers Federation (AIBTMF) demands tax relief and restoration of the composition scheme
Food, clothing, and shelter are the basic necessities of life. Every individual dreams of building a home for themselves and their family. For centuries, red bricks have been the foundation of durable and affordable housing. However, in 2017, the GST Council imposed a composition scheme on brick manufacturers, which was withdrawn in March 2022. The tax rate was then raised from 1% to 6%, and in cases where Input Tax Credit (ITC) was claimed, from 5% to 12%.
At a press conference today, the All India Brick and Tile Manufacturers Federation said the industry is reeling under the burden of 12% GST on bricks and 18% GST on coal. The Federation warned that unless the government intervenes with tax relief, the dream of affordable housing for the common man will slip further out of reach. In protest, brick manufacturers across the country are preparing for large-scale demonstrations.
The Federation pointed out that ever since the withdrawal of the composition scheme, brick makers have been urging the government to reduce GST rates. Yet, in the 56th meeting of the GST Council held recently, no relief was provided to the brick industry. By contrast, the GST rate on cement was cut from 28% to 18%, while brick manufacturers were ignored entirely.
Federation’s National General Secretary, Mr. Murari Kumar “Mannu,” said the brick kiln industry is a seasonal rural enterprise that provides employment to more than 30 million people every year. “Our industry plays a vital role in rural employment and affordable housing. We are hopeful that the government will reconsider GST rates on bricks and provide necessary relief so that both livelihoods and the dream of a home for every family can be safeguarded,” he said.
The Federation further noted that brick kilns are among the largest sources of rural employment, helping curb migration to cities. Following directions from the Ministry of Environment, all kilns in the country have been converted to zig-zag technology, requiring nearly ₹50 lakh in investment per kiln. Despite this, no financial support has been provided by government agencies. As a result, rising production costs are now being passed directly onto consumers.
The Federation cautioned that the Increased tax burden will also impact flagship housing schemes such as the Pradhan Mantri Awas Yojana. If GST rates are not reduced in time, construction costs will continue to escalate, making affordable housing even more elusive.
The Federation’s key demands include reinstating the composition scheme for brick manufacturers with turnovers between ₹1 crore and ₹50 crore, reducing GST on bricks from 12% to 5% with ITC facility, and replacing the current 6% and 12% slabs with a uniform 1% rate.
According to the Federation, for the last 35 years the brick industry has absorbed the tax burden without passing it on to consumers under the composition system. The sudden hike in GST has now pushed the sector into losses. The industry currently operates for only four months a year, and without immediate government action, it faces the risk of a complete shutdown.
The press conference was attended by Federation’s National President Mr. Omveer Singh Bhati, National General Secretary Mr. Murari Kumar Mannu, Haryana State President Dr. Ajit Yadav, National Treasurer from Haryana Mr. Brij Mohan Gupta, along with representatives from Uttarakhand including Mr. Naresh Tyagi, Mr. Satendra Singh, and Mr. Khushiram Goyal.
