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India's real estate sector has welcomed the GST Council's recent rate rationalisation, which aims to reduce the tax burden on essential construction materials. Experts noted that lowering GST from 28% to 18% on cement and marble, and from 12% to 5% on granite blocks, will reduce housing costs and benefit homebuyers. Industry leaders highlighted that while construction materials form a portion of total project costs, the reforms are expected to make homes more affordable, stimulate demand, and encourage developers to accelerate projects, particularly ahead of the festive season.
The GST Council's recent approval of rate rationalisation has been received positively by India's real estate sector. The reforms, announced by the Prime Minister earlier this year, are designed to ease the tax burden on essential goods, simplify compliance for businesses, and support overall economic growth. Advertisement
Experts pointed out that the reduction of GST from 28% to 18% on cement and marble, and from 12% to 5% on granite blocks, would decrease the overall cost of housing units, benefiting homebuyers across segments. Mr. Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd, said that the move provides significant relief for the common man and will help create sustainable demand in the housing market.
Mr. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, observed that the GST reforms simplify India's tax structure and directly reduce construction costs. According to him, this will make homeownership more accessible and help developers manage compliance efficiently.
Mr. Sumit Agarwal, Director of Ashtech Group, added that lowering GST on cement, marble, and other key inputs will ease construction costs in both real estate and infrastructure projects. He expects this step to stimulate demand and provide a measurable boost to the industry.
Mr. Vikas Bhasin, Managing Director of Saya Group, welcomed the GST rationalisation but pointed out that construction materials account for about 25-30% of total project costs. He noted that while the reduction will help, its impact on final property prices will be limited.
Tax expert Mr. Deepak Kumar Jain said that real estate, being labour-intensive, would benefit from GST cuts on materials like cement and tiles. He expects that developers may pass on these cost savings to homebuyers, helping ease property prices, which have seen a significant rise over recent years.
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