Cement GST rate cut to 18% to ease construction, aid affordable housing: Builders

Realtors have hailed the government’s move to slash GST on cement from 28% to 18%, calling it a landmark reform that will reduce construction costs and boost housing demand. The reduction, part of a broader GST rationalisation, is expected to lower overall project expenses by up to 5%, with developers and industry bodies saying the benefits will flow to both homebuyers and the real estate sector. Rajul Bohra, Partner, JSA Advocates & Solicitors, said, “The GST Council had introduced a two-slab structure of 5% and 18%. The rate cuts on cement to 18% should ease financial burdens for real estate developers and improve affordability. However, 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