Tax on cement: 18% GST will be levied on cement: Home buyers and real estate will get big benefit..

On September 3, the GST Council decided to reduce the tax rate on cement from 28 percent to 18 percent. This move is expected to boost the real estate sector. Experts say that the affordable housing sector will benefit the most. Home buyers will be able to get the benefit of low construction costs. Due to this, homes will be more accessible, and the government's "Housing for All" mission will get a boost. Let us also tell you what the real estate experts have to say on this decision of the government and how the common people will be able to benefit from it.

GST reduced on construction material, along with cement

In the 56th GST Council meeting, the government reduced the GST rate on cement, one of the most important inputs for housing and infrastructure, from 28 percent to 18%. Cement alone accounts for a large part of the construction cost, and a huge tax reduction is likely to reduce the cost pressure on residential and commercial projects. Similarly, the tax rate on marble and travertine blocks has been reduced from 12 per cent to 5 per cent, while granite blocks will also attract only 5 per cent GST from the earlier 12 per cent. The tax rate on sand-lime bricks and stone inlay work has also been reduced from 12 per cent to 5 per cent. These reductions are expected to make finishing and structural materials more affordable, which will have a direct impact on the construction budget.

Home buyers will benefit.

Hiranandani and NAREDCO National Chairman Niranjan Hiranandani said that for the real estate and infrastructure sector, reducing GST on critical construction materials like cement from 28 per cent to 18 per cent is a historic reform. This will significantly reduce costs, improve the viability of projects, and accelerate infrastructure development across the country. He said affordable housing, in particular, will benefit as the benefits of reduction in construction costs can be passed on to home buyers, making homes more accessible and also boosting the government's mission of 'Housing for All'. This reform is not only a boost for developers but also beneficial for consumers, the housing sector, and India's long-term growth story. He further said that reforming GST is a festive gift for Indian consumers and a strategic boost to the economy.

The economy will get a boost.
NAREDCO National President G Hari Babu said the timing of this decision is equally important. This decision, announced during the festive season, will improve consumer sentiment and create new demand. It will strengthen the economy, support home buyers, and encourage developers. He said it is beneficial for consumers, the real estate sector, and the country's growth story. We see it as a progressive step that will provide long-term momentum to the Indian economy. Deepak Kumar Jain, founder and CEO of TaxManager.in, told HT that real estate, which is one of the most labour-intensive sectors, is expected to benefit significantly from the reduction of GST rates on key construction materials like cement from 28 per cent to 18 per cent. This move will help reduce the overall construction cost to some extent.

This was announced by Nirmala Sitharaman.

In the 56th GST Council meeting, it was decided to rationalise the GST rates into two slabs of 5 per cent and 18 per cent by merging the rates of 12 per cent and 28 per cent. Addressing the media after the Council meeting on September 3, Union Finance Minister Nirmala Sitharaman said First of all I would like to say that the Hon'ble Prime Minister set a new direction for the next generation of reforms in the sector by giving a speech from the Red Fort on 15 August. He expressed his desire that we should pass on the benefits to the people as soon as possible. This reform is not only based on rationalising the rates.

It is also based on structural reform. It is also based on making life easier so that businesses can do business with GST. He further said that we have fixed the problems of inverted duty structure. We have solved classification problems and ensured stability and predictability. We have reduced the slabs. Now there will be only two slabs, and we are focusing on issues of compensation, making life easier, simplifying registration, filing returns and refunds.

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