GST Rate on Block Joining Mortar Reduced to 18 Percent
The West Bengal AAAR ruled that block joining mortar attracts 18% GST under tariff heading 3824 instead of 28%.
- Ruling
- Appeal Case No. 03/WBAAAR/Appeal/2018 dated 26.07.2018
- Dated
- 26 Jul 2018
- Authority
- Appellate Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Sika asked if its block joining mortar attracts 18% or 28% GST.
- The appellate authority ruled the product falls under tariff heading 3824.
- Block joining mortar is taxed at 18% GST rather than 28%.
- It is classified as non-refractory mortar used for joining masonry blocks.
- Past self-declarations do not prevent applying the correct tax rate.
In short
Sika India Private Limited manufactures a dry mix product called SIKA Block Joining Mortar, used to join AAC blocks and concrete bricks. The West Bengal Authority for Advance Ruling previously classified this mortar under tariff heading 3214, which carried a high Goods and Services Tax (GST) rate of 28%. The company appealed, arguing that the mortar is for structural block joining rather than wall surface preparation or plastering. They sought reclassification under tariff heading 3824 to lower the GST rate to 18%.
What has changed
How it worked before
Businesses often classified block joining mortars under tariff heading 3214 and charged 28% GST due to confusion over product categories or pre-GST tax positions.
What has changed
The Appellate Authority for Advance Ruling (AAAR) modified the earlier order 03/WBAAAR/Appeal/2018. It decided that non-refractory block joining mortar falls under tariff item 3824, which carries an 18% GST rate under Serial no. 97 of Schedule III. The authority also stated that previously filing under a higher tax rate does not prevent a business from using the correct technical classification now.
Who this affects
Manufacturers and suppliers of dry mix mortars and block joining adhesives used for AAC blocks, concrete blocks, and fly ash bricks.
An example
A construction chemical supplier in Kolkata manufactures mortar specifically designed for AAC block joining. The supplier had been charging 28% GST under heading 3214 because of past tax practice. Learning about the Sika India Private Limited ruling, they review their product composition and see it matches tariff heading 3824. To ensure their local GST office agrees, they apply for an advance ruling before changing the rate on their invoices.
What you should do
Review the technical specifications and end-use of your dry mix mortar products. Note that an advance ruling binds only the business that asked for it and its specific tax authority. If you want legal protection before charging 18% GST instead of 28%, you should apply for your own advance ruling.
If you do nothing
If you lower your GST rate from 28% to 18% without legal backing, a tax officer may challenge your product classification during an audit. They can demand the 10% tax difference along with interest and financial penalties. You cannot rely on another company's advance ruling as a legal defense for your own business.
The terms explained
- input tax credit
- The tax a business pays on its raw material purchases that it can offset against the tax it collects on sales.
- Advance Ruling
- An official decision by tax authorities clarifying how GST rules apply to a specific business query.
- Tariff Heading
- A standardized numerical code used under the Customs Tariff Act to group goods for tax purposes.
- Non-refractory Mortar
- A cement and sand mortar mix that cannot withstand extreme heat, used for normal building construction.
The ruling in detail
Appellate Authority for Advance Ruling
M/s Sika India Private Limited
Appeal Case No. 03/WBAAAR/Appeal/2018 dated 26.07.2018 · West Bengal
Questions before the authority
- Whether 'SIKA Block Joining Mortar' is to be classified under Tariff Head 3214 90 90 as held by the lower authority or under Tariff Head 3824 50 90.
Facts
The Appellant manufactures 'SIKA Block Joining Mortar', a dry mix product composed of sand, cement, slag/fly ash, and polymer additives used for joining masonry units like AAC blocks, concrete blocks, and fly ash bricks. The West Bengal Authority for Advance Ruling had classified the product under Tariff Heading 3214 90 90 attracting 28% GST. The Appellant appealed seeking reclassification under Tariff Heading 3824 50 90 attracting 18% GST to align with market competitors and proper technical categorization.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification and GST rate for 'SIKA Block Joining Mortar' | Classified under Tariff Item 3824, taxable under Serial no. 97 of Schedule III Reverses the lower authority's classification under Tariff Heading 3214 90 90 |
The Appellate Authority for Advance Ruling modified the lower ruling and held that 'SIKA Block Joining Mortar' is non-refractory and not used for surface preparation. Consequently, it is classifiable under **Tariff Item 3824** as non-refractory mortar and taxable under **Serial no. 97 of Schedule III** (18% GST).
Reasoning
The AAAR analyzed the chemical constituents, intended end-use, and commercial identity of 'SIKA Block Joining Mortar'. The product lacks refractory properties and is strictly used for joining structural masonry blocks rather than surface preparation, plastering, or surfacing for walls, floors, or facades covered under Heading 3214. The Authority held that notwithstanding the Appellant's prior voluntary declaration under Heading 3214 due to pre-GST tax rate parity, the correct classification under the Customs Tariff Act, 1975 based on trade parlance and technical specifications is **Tariff Item 3824**.
Provisions relied on
- Section 100(1) of the Central Goods and Services Tax Act, 2017
- Section 100(1) of the West Bengal Goods and Services Tax Act, 2017
- Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017
- Notification No. 1125-FT dated 28.06.2017 under WBGST Act, 2017
- Customs Tariff Act, 1975 (Tariff Headings 3214 and 3824)
For the practitioner
This order establishes that dry mix non-refractory block-joining mortars are classifiable under **Tariff Item 3824** (18% GST) rather than Heading 3214 (28% GST). It also clarifies that prior voluntary misclassification under early GST or pre-GST regimes does not preclude an assessee from establishing the correct classification based on end-use and technical nature.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/2024-02/wbaaar-appeal_no-03_2018_dt_24-07-2018.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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