The real estate sector has hailed the 56th GST Council meetings decision to rationalise tax rates on key construction inputs as a landmark reform that could transform housing affordability and spur demand in the upcoming festive season. By lowering GST on cement from 28% to 18% and on granite blocks from 12% to 5%, the move is expected to ease input costs for developers, expected to ease input costs for developers, improve project viability, and accelerate housing delivery, particularly in the affordable and mid-income segments. Developers say the decdelivery, particularly in the affordable and mid-income segments. With homebuyers already returning to the market after two years escalation, the reduction in taxation is expected to provide much-needed relief and encourage fence-sitters to finalise purchase. Analysts believe the reform will also give developers more flexibility in pricing, enabling them to pass on benefits to consumers while maintaining margins. The housing sector, particularly stands to benefit from GST reduction on input materials like cement from 28% to 18%  and garnite blocks from 12% to 5 % as this will ultimately reduce home price for consumers and create sustainable demand across  segments. With input costs easing, developers expect improved project viability, faster delivery and renewed housing demand across markets. For homebuyers, the reform offers renewed hope of affordable prices and greater supply at a time when festive sentiment is at its peak.
 

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