In a major policy move, the GST Council has rolled out sweeping tax relief on critical construction materials—marking a bold attempt to reinvigorate India’s real estate and housing sectors. Most notably, GST on cement has been slashed from 28% to 18%, while tax rates on marble, travertine, granite blocks, sand-lime bricks, and stone inlay work have dropped from 12% to 5%.
Industry experts have quickly hailed the reform. Shekhar Patel, President of CREDAI National, estimates that the move could lead to an overall 5% reduction in construction costs, potentially benefitting both developers and homebuyers. Similarly, Niranjan Hiranandani, Chairman of NAREDCO National, called it a “festive bonanza for Indian consumers” that could drive GDP growth beyond 8%.
While current contracts may delay immediate cost reductions, the real estate industry expects the relief to reflect in future project pricing, offering improved margins for developers and greater affordability for buyers. This comes at a crucial time, as escalating input costs have left affordable housing under pressure—especially in metro markets where construction costs have surged.
As India moves forward with this targeted tax rationalization, the move could emerge as a key lever to unlock demand, boost homebuilding activity, and make housing more accessible for millions.
