Morbi is the heart of India’s ceramic-tile industry, and its GST profile is distinct: tiles are taxed at 18%, fuel and raw-material inputs carry heavy credit, a large share of output is exported, and the sheer freight volume makes e-way bill discipline unavoidable. Ceramic GST rewards tight input-credit and export-refund management.
The 18% tile rate and full input credit
Ceramic tiles, sanitaryware and most Morbi output are taxed at 18%. Being a manufacturer at a standard rate, a ceramic unit claims full input tax credit — and its input base is unusually large: natural gas and coal for the kilns, glaze and body chemicals, packing, and capital machinery. Fuel and power are a major cost in ceramics, so recovering every rupee of eligible credit through monthly GSTR-2B reconciliation directly protects margins.
Exports and refunds
Morbi exports a very large share of its tiles. Exports are zero-rated, so most ceramic exporters ship under an LUT and then claim refunds of the input credit accumulated on domestic purchases. Given the fuel-heavy input base, these refunds are substantial — and letting them accumulate unclaimed ties up serious working capital. We file the LUT and pursue the export refunds so your credit converts back to cash on schedule.
E-way bills for heavy freight
Ceramic is heavy, high-volume and shipped in bulk across India, so nearly every dispatch needs an e-way bill, correctly valued and with the right HSN and vehicle details. With the number of consignments a Morbi unit moves daily, e-way bill errors and expiries are a real notice risk. We build e-way bill generation into your billing flow so dispatches are never held up or flagged.