HSN Code for Cement and Related Products with New GST Rates

Find new GST rates and HSN codes for cement and related materials. Stay informed with the latest tax updates.
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Understanding HSN Code for Cement
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2 min
07 November 2025

Harmonised System Nomenclature (HSN) codes are an integral component of managing businesses efficiently in India, especially for enterprises engaged in the import and export of goods. These codes standardise the classification of goods worldwide, making global trade more transparent and streamlined. For business owners, especially those running Micro, Small, and Medium Enterprises (MSMEs), understanding and adhering to HSN codes is not just a matter of regulatory compliance but also affects the financial health of the business. In this regard, business loans emerge as a practical solution to navigate the complexities associated with HSN code compliance, covering expenses that ensure the smooth operation of freight-related activities.

What is an HSN Code for Cement?

HSN code for cement is a specific classification under the Harmonised System Nomenclature, designed to categorise cement products for taxation, trade, and regulatory purposes. This system facilitates the standardised identification of cement products across international borders, aiding in the streamlined process of import and export.

Why HSN Codes are Assigned to Cement Products

HSN codes are assigned to cement products to simplify the process of trade by standardising the classification of goods. This not only helps in identifying the type of cement product but also aids in determining the applicable taxes, thereby making the global trade of cement products more efficient and less susceptible to errors.

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Importance of HSN Code for Cement

  • Regulatory Compliance: Helps businesses comply with both national and international trade regulations.
  • Taxation: Supports correct tax classification and ensures adherence to the updated GST rates (effective September 22, 2025).
  • Global Trade: Facilitates seamless import and export processes for cement products.
  • Inventory Management: Simplifies inventory tracking and management for companies.

HSN Code for Cement: Classification

  1. Global Standardisation: HSN codes for cement are based on the Harmonised System, a global nomenclature developed by the World Customs Organisation, using a 6-digit code to classify goods for trade and customs purposes.
  2. Detailed Classification: Cement products are categorised under Chapter 25 as "Mineral Products," with further classification under heading 25.23 for various types of hydraulic cements, based on composition, use, and physical characteristics.
  3. Country-Specific Extensions: Countries can extend the standard 6-digit codes to 8 digits or more, allowing for more precise classification and the application of local taxation and trade policies, such as specific GST rates in India.
  4. Taxation Alignment: The HSN classification determines the applicable GST rate for each type of cement product, ensuring uniform taxation across different regions and facilitating compliance with local and international trade regulations.

The factors influencing the HSN classification for Cement are:

  • Product Composition: The main components and chemical makeup of the cement product influence its classification.
  • Use or Application: The intended use or specific application of the cement product can also determine its classification under the HSN codes.
  • Physical Characteristics: Physical characteristics such as colour (e.g., white cement) and form (e.g., whether in clinkers or powdered form) play a role in the classification.

How to Find the HSN Code for Cement

To find the HSN code for cement, businesses can refer to the official GST portal, trade-related publications, or consult with a trade compliance expert. It is crucial to ensure the accuracy of the HSN code used to prevent any legal or financial discrepancies.

HSN Codes and new GST rates for Cement Products

As part of the GST 2.0 reforms, the GST Council reduced the tax rate on most cement products and cement-based structural components from 28% to 18%, effective September 22, 2025.

HSN Code

Description

New GST Rate (%) (Effective Sept 22, 2025)

Old GST Rate (%)

2523

Portland cement, aluminous cement, slag cement, and similar hydraulic cements, whether coloured or in clinker form

18%

28%

252321

White Portland Cement, whether or not artificially coloured

18%

28%

252329

Other Portland Cement

18%

28%

252330

Aluminous Cement

18%

28%

252390

Other hydraulic cements

18%

28%

382450

Non-refractory mortars and concretes for building or civil engineering purposes (e.g., ready-mix concrete)

18%

18%

681011

Building blocks and bricks of cement, concrete, or artificial stone

18%

28%

681019

Tiles, flagstones, bricks, and similar articles of cement, concrete, or artificial stone

18%

28%

681091

Prefabricated structural components for building or civil engineering of cement, concrete, or artificial stone

18%

28%

681099

Other articles of cement, concrete, or artificial stone

18%

28%


This revision helps reduce the tax burden on construction materials while streamlining compliance under the updated GST framework.

Compliance and Regulations

Ensuring the use of accurate HSN codes for cement is essential for compliance and to prevent penalties. The substantial reduction of the GST rate on cement to 18% represents a significant change, requiring businesses to promptly update all invoicing, accounting, and ERP systems to reflect the new tax structure, effective September 22, 2025.

Conclusion

Accurate application of HSN codes is crucial for the cement industry. With most cement products shifting to an 18% GST rate effective September 22, 2025, businesses must promptly update their classification and invoicing processes. Utilising financial assistance, such as a business loan, can help cover the expenses of system upgrades and staff training required to ensure smooth compliance under the new GST framework.

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Frequently asked questions

What is HSN code 681099?
HSN code 681099 pertains to articles of cement, concrete, or artificial stone, catering to specific uses not covered under other codes, ensuring a broad classification for diverse products.
What is the HSN code 2523 for cement?
HSN code 2523 specifically classifies various types of cement, including Portland cement, aluminous cement, slag cement, and similar hydraulic cements, whether coloured or in the form of clinkers.
What is the code for cement?
The general HSN code for cement is 2523, encompassing a wide range of cement products used in construction and other industries, facilitating standardised trade and taxation processes.
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