The GST Council has announced major tax cuts on key construction materials such as cement, granite, and marble, aiming to reduce project expenses for developers and ease the burden on homebuyers. With GST 2.0, cement and ready-mix concrete will now be taxed at 18% instead of 28%, while bricks, tiles, and sand fall to 5% from 18%. Paints and varnishes will also come under 18% instead of 28%. These reforms take effect from September 22, the first day of Navratri, which Prime Minister Narendra Modi described as a “GST bachat utsav” during his address on September 21. The new GST structure has been simplified to mainly two slabs—5% and 18%—while luxury goods continue to attract a 40% levy. Earlier, GST was spread across four slabs: 5%, 12%, 18%, and 28%, with an additional cess on certain items. Industry experts say the reduction in GST on construction inputs could lower overall building costs by 3–5%, translating into about ?1,000 savings per square meter of construction. This benefit is expected to improve project economics for developers and make homes more affordable for buyers. G Hari Babu, national president of NAREDCO, welcomed the move and stressed that the gains from cheaper cement must be passed on to real estate projects. If the cement industry absorbs the tax benefit without passing it along, he warned that developers may seek government intervention. But if the benefit flows through, it could directly cut project costs, allowing developers to price homes more competitively, boost affordability, and build buyer confidence. Realtors’ body CREDAI added that the GST cuts will enhance consumer purchasing power and stimulate demand for housing during the festive season, giving the sector fresh momentum.

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