GST 2.0: Festive Cheer, Mixed Impact

The GST new two-tier structure of 5% and 18% from September 22 is a welcome stride towards simplifying taxation in India. The cut in GST on cement from 28% to 18% and reductions on other key construction materials are crucial as it will help moderate construction costs, easing pressure on real estate developers and encouraging sustainable infrastructure growth. Rajul Bohra, Partner, JSA Advocates & Solicitors too expressed similar sentiments, “The impact on home prices will depend on several factors. Greater clarity is needed on input tax credit for buildings meant for rental use, and it will need to be seen whether benefits will be passed to homebuyers or not.” Read more