Reduced Goods and Services Tax (GST) on cement to 18% brings benefits for real estate builders and home purchasers, signifying a victorious move.

Reduced Goods and Services Tax (GST) on cement to 18% brings benefits for real estate builders and home purchasers, signifying a victorious move.

The Indian Finance Minister, Nirmala Sitharaman, has introduced a reform in the Goods and Services Tax (GST) fees, simplifying the tax structure to a two-tier system of 5% and 18%. One of the significant changes in this reform is the reduction of the GST rate on cement from 28% to 18%.

This reduction has been warmly welcomed across the real estate fraternity as a progressive reform. Shaurya Garg, MD of North Wind Estates, believes that the government's decision to rationalise GST on cement, sand, bricks, and other inputs will act as a strong catalyst for the real estate industry, benefitting homebuyers directly through lower construction costs.

The affordable housing segment is predicted to be the biggest beneficiary of the GST rate reduction on cement. Mohit Batra, Regional Director of Realistic Realtors, asserts that the GST cut on cement will benefit both residential and commercial real estate, helping reduce costs in the mid and affordable housing segments and boosting project viability for developers of offices, retail, and hospitality projects.

Sakshee Katiyal, Chairperson of Home & Soul, notes that the reduction in GST on cement directly increases homebuyers' purchasing power, allowing developers to contain prices, especially for under-construction projects, and enabling families to move from aspiration to action in their homebuying journey.

Adish Oswal, Chairman of Oswal Group, states that the GST cut on cement is a visible relief for the real estate sector, easing financial pressure on developers and allowing for more competitive pricing in the commercial segment. Udit Jain, Director of ONE Group, emphasizes that the GST cut on cement brings real relief to homebuyers, as lowering input taxes directly softens construction costs, making entry-level housing more affordable.

Industry experts believe the reduction in GST on cement will enhance affordability, stimulate demand, and strengthen overall market sentiment in the real estate sector. The reduction in GST on key construction materials, such as marble and travertine blocks, granite blocks, sand-lime bricks, and stone inlay work, has also been implemented.

The decision to reduce GST on input materials is expected to decrease construction costs and increase the affordability of residential and commercial spaces in the real estate sector. This move is expected to create momentum in emerging real estate markets and benefit all stakeholders in the real estate ecosystem. The GST rationalisation is being viewed as a reform that balances the interests of both developers and buyers, strengthening homebuyer confidence and providing long-term stability to the real estate sector.

In conclusion, the reduction in GST on cement is expected to significantly lower project costs in the real estate sector, making housing more affordable and stimulating demand. The simplified GST structure is a step towards fostering a healthier and more sustainable real estate market in India.

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