The Central Government’s recent decision to slash GST on cement from 28% to 18% has been hailed as a historic move. For developers, it translates into a 3–5% reduction in construction costs. On paper, this sounds like a big win for the housing sector and for affordability.

But the question that every homebuyer is asking — and should be asking — is simple: Will this benefit really reach them?

Past Lessons: Relief for Builders, Not Buyers

My two decades of reporting on Indian real estate have shown me one consistent pattern — whenever the government provides relief to developers, the benefits rarely trickle down to homebuyers.

Even Maharashtra Chief Minister Devendra Fadnavis highlighted this at a recent event with developers in Mumbai. He openly said that whenever builders came to him seeking reduction in government premiums and charges, he noticed that instead of home prices reducing, they actually went up. The relief padded builders’ profit margins, but buyers saw no respite.

The Infrastructure Paradox

There’s also the paradox of infrastructure. When new infrastructure is built, logic dictates that real estate prices should become more affordable due to improved supply and connectivity. Yet, the opposite happens in India’s big cities.

Take the example of Mumbai’s Coastal Road. This massive project has transformed accessibility, but instead of stabilising prices, it has fuelled them. In Worli today, homes are being sold at well above ₹2 lakh per sq. ft. Clearly, infrastructure is used as a justification to push prices higher, not lower.

So, Should Homebuyers Be Hopeful?

Frankly, I’m not optimistic. The GST reduction is significant, but if history is any guide, developers are far more likely to pocket the cost savings rather than pass them on. Homebuyers in India are fragmented, lacking the collective bargaining power that developers wield through their associations.

However, there is one step buyers can take. If you have recently booked in a project, organise collectively and ask your builder: If your construction costs are reducing by 3%, why can’t you pass on at least 1–2% of this benefit to us? It is only fair that the fruits of a government decision intended to support affordability also reach the people it was meant to help.

Conclusion

The government’s GST reform on cement is a bold and positive move. But unless developers show willingness to share the relief, homebuyers may once again be left out of the equation.

As someone who has reported on this sector for 20 years, my view is clear: until buyers demand accountability, the cycle will not change. Builders will continue to prioritise profit over affordability.

The question is — this time, will homebuyers raise their voice?

Also Read: Slash GST Rates, New Demand After Stamp Duty Cut

The post GST Cut on Cement: Will Homebuyers Really Benefit, or Will Developers Pocket the Gains? appeared first on Square Feat India.

Why It Matters for Homebuyers

• Cheaper Homes: Reduced GST on cement (28% → 18%), bricks, tiles, ceramics, sanitaryware, and granite blocks will lower overall construction costs by 3–5%.
• Affordable Housing Push: ANAROCK data shows affordable housing sales share plunged from 38% in 2019 to just 18% in 2024. Lower costs could reverse this trend.
• Clearer Pricing: A simplified two-slab GST (5% and 18%) brings transparency for buyers, encouraging more fence-sitters to purchase homes, especially in tier-II and tier-III cities.

Expert Voices

Anuj Puri, Chairman, ANAROCK Group
“The GST rationalisation is a timely intervention for the housing sector. Affordable housing has lost significant share over the past five years due to rising input costs and muted demand. Lower construction costs will not only revive developer interest in this segment but also make homes more affordable for end-users. This clarity in taxation will particularly encourage first-time homebuyers in smaller cities to take buying decisions.”

Neeraj Akhoury, President, Cement Manufacturers’ Association & MD, Shree Cement Ltd.
“Reducing GST on cement to 18% corrects a long-standing anomaly. Cement was one of the highest-taxed essential materials. This change ensures parity with other core construction inputs and aligns India with global practices. As cement is the backbone of housing and infrastructure, this rationalisation will boost both consumption and affordability.”

Pradeep Aggarwal, Founder & Chairman, Signature Global
“We wholeheartedly welcome the GST Council’s move. By lowering taxes on cement and other inputs, home prices can come down, creating sustainable demand across housing categories.”

Manju Yagnik, Vice Chairperson, Nahar Group & Senior VP, NAREDCO Maharashtra
“This is a transformative reform that reduces input costs and makes housing more accessible, particularly in the affordable and mid-income segments where demand is strongest.”

Bottom Line

With India facing an urban housing shortfall of nearly 1 crore budget homes, this GST rationalisation provides relief when it’s most needed. Developers gain cost efficiency and buyers get improved affordability—together setting the stage for a festive season boost in housing demand.

Also Read: Economic Impact of Cement

The post Homebuyers to Benefit as GST on Cement, Building Materials Cut From Sept 22 appeared first on Square Feat India.