Cement's 28% GST reduction to 18% is anticipated to reduce building costs and increase access to affordable housing
By Bricksnwall | 2025-09-04
Cement GST Cut: Experts predict that affordable housing could gain from lower prices being passed on to purchasers, increasing the accessibility and enabling Accommodations for all.
In an effort to stimulate the real estate market,
the GST Council reduced the cement tax rate from 28% to 18% on September 3.
According to analysts, affordable housing will gain the most since lower
building costs can be transferred to purchasers, increasing house accessibility
and bolstering the government's Housing for All initiative.
According to Niranjan Hiranandani, chairman of Hiranandani and NAREDCO National, the reduction of the GST on basic building supplies like cement from 28% to 18% is a historic reform for the infrastructure and real estate sectors. This will accelerate the development of the country's infrastructure, increase project viability, and significantly lower input prices.
Because lower building costs may be passed on to
consumers, affordable housing in particular stands to benefit, increasing
accessibility and advancing the government's Housing for All agenda. "This
rationalisation is not only a boon to developers but also to consumers, the
housing industry, and India's long-term growth story," he added, adding
that the rationalisation of the GST is a strategic economic boost and a holiday
for Indian consumers.
According to NAREDCO national president G Hari
Babu, the timing of this decision is just as important. It will improve
customer sentiment and generate new demand if it is announced over the holiday
season. It will stimulate developers, help homebuyers, and serve as a powerful
economic stimulant. Customers, the real estate industry, and the country's
growth narrative all benefit from this. We believe that this is a positive move
that would provide India's economy sustained impetus," he stated.
As one of the most labour-intensive industries, real estate is anticipated to benefit greatly from the GST rates on essential building materials like cement being lowered from 28% to 18%, according to Deepak Kumar Jain, founder and CEO of TaxManager.in. This action will contribute to a decrease in overall.
By combining the 12 and 28 percent rates, the 56th GST Council meeting determined to simplify the GST rates into two slabs of 5 and 18 percent.
Source: Hindustan Times
