The National Real Estate Development Council (NAREDCO) has called on the Central Government to rationalise the Goods and Services Tax (GST) on building materials, urging a uniform cap of 18% to rein in construction costs and revive affordability in India’s real estate sector.
Addressing stakeholders during a recent industry forum, NAREDCO National President Rajan Bandelkar highlighted that the current GST structure—ranging from 18% to 28% on essential inputs such as cement, steel, and tiles—is pushing up project costs and squeezing margins, particularly in the affordable and mid-income housing segments.
“Reducing GST on construction materials to 18% will not only bring relief to developers but also enable them to pass on cost benefits to end-users,” Bandelkar said. He emphasized that the move could catalyze faster housing development under key government schemes like PMAY and bolster the industry’s contribution to employment and GDP.
Industry experts echoed the concern, stating that a high GST regime, combined with input cost inflation and regulatory delays, has become a bottleneck for the sector’s recovery. NAREDCO also appealed for single-window clearance and enhanced liquidity access for stalled projects, aligning with the broader real estate reforms needed to meet India’s growing urban housing demand.
