The GST Council’s latest reforms are set to bring some relief to the housing sector. While property-related tax rates remain unchanged, a significant cut in GST on construction materials—especially cement—will help reduce overall project costs.
No change in property tax rates
For homebuyers, the tax burden on property remains the same. Affordable housing continues at 1% GST, under-construction projects at 5%, and completed properties remain exempt. This offers much-needed stability and avoids confusion for buyers planning their purchase.
Construction material becomes cheaper
The big relief is on construction inputs:
- Cement: GST slashed from 28% to 18% (accounts for 25–30% of construction costs).
- Marble, granite, stone bricks: Reduced from 12% to 5%.
- Steel: Remains unchanged at 18%.
These changes are expected to lower overall construction costs by 3.5–4.5%, improving project viability and potentially enhancing affordability if developers pass on the benefits.
Impact on housing categories
- Affordable and mid-income housing: Likely to benefit the most, with lower input costs encouraging developers to launch new projects.
- Premium housing: Reduction in marble and granite GST will particularly support cost efficiency here.
- Homebuyers: With no tax hikes and potential cost savings, buying decisions are unlikely to be deferred.
Overall, the reforms are being seen as a marginally positive step for the real estate sector—especially if the savings get shared with buyers.
Also Read: Homebuyers to Benefit as GST on Cement, Building Materials Cut From Sept 22
