55th GST Council clarifies Autoclaved Aerated Concrete (AAC) Blocks with over 50% Fly Ash Content will attract a 12% GST Rate

The GST Council has clarified that Autoclaved Aerated Concrete (AAC) blocks, depending on their fly ash content, will attract GST at a specified rate. The decision comes as part of an effort to bring more clarity to the taxability of building materials under the GST regime. AAC blocks, used widely in construction, have varying fly ash content, and the council has now set a clear guideline on the tax rates applicable to them. This clarification ensures uniformity in how these blocks are taxed, providing clarity for manufacturers and consumers. The move aims to simplify GST compliance in the construction industry and address concerns related to the tax treatment of AAC blocks, especially in large-scale projects.