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The GST council cut cement GST to 18%, aiming to boost property affordability. Industry leaders players welcome the move.
GST rate cut on cement to 18%
New GST rates: The GST council, led by Finance Minister Nirmala Sitharaman, has announced to slash GST on cement from 28 per cent to 18 per cent along with streamlining slabs. Industry players believe that the move is expected to boost consumption by reducing property prices and improving affordability.
The introduction of a two-slab GST structure is a timely reform. “By reducing rates on key inputs like cement, granite and marble, the government has eased cost pressures in construction and simplified compliance, improving affordability for homebuyers, especially in the under-construction segment,” argued Mohit Goel, Managing Director, Omaxe.
A clearer, two-slab GST structure will also provide buyers with greater transparency about their overall tax liability, improving trust and confidence in the sector. “A simpler, lower-tax framework will help shift the sector further towards transparency, formalisation and affordable,” argued Aman Sarin, Director and CEO, Anant Raj Limited.
For homebuyers, the benefits of the reduction of GST rates are even more direct. “Lower construction costs, will translate into reduced property prices and improved affordability,” Sarin added.
From the perspective of developers on lower construction costs, Rakesh Malhotra, Founder and Chairman, PRIME Developments, said, “they can offer better housing options, especially during the festive season when aspirations soar.”
“This reform not only boosts timely project and sales, but also brings us closer to the notion of ‘Housing For All’,” he added.
“The festive quarter has always been a natural catalyst for homebuying and this year the backdrop is even stronger. The GST Council’s recent cuts, from 12% to 5% on marble and granite blocks and 28% to 18% on key cements, signal softer input costs and help ease pressure on future pricing,” Amrita Gupta, Director, Manglam Group.
In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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