GST Council Cuts Rates on Key Housing Materials, Providing Relief to Homebuyers
The GST Council has announced significant reductions in GST rates on essential building materials, providing a major relief to the housing sector and the common man. This move is expected to reduce the overall cost of construction and improve affordability for middle-class families.
GstHousing SectorConstruction MaterialsAffordabilityReal EstateReal Estate NewsSep 09, 2025
The Government has announced a significant relief for the housing and construction sector by reducing GST rates on key building materials. Cement, which previously attracted a 28 percent GST, will now be taxed at 18 percent. The rates on items like marble, granite blocks, and sand-lime bricks have been brought down from 12 percent to just 5 percent. Similarly, bamboo flooring, wooden joinery, packing cases, and pallets will now carry only 5 percent GST instead of 12 percent.
This move is expected to make construction materials cheaper, thereby reducing the overall cost of homes and infrastructure projects. This will foster affordability for people looking to buy or build a house. Addressing a press conference on 3rd September, Union Finance Minister Nirmala Sitharaman stated that the reduction in GST rates for the housing sector would provide significant relief to the people.
Talking to Akashvani News, industry stakeholders have welcomed the new GST reforms, saying that the reduction in taxes will provide much-needed relief. They expressed belief that the cut in GST will boost demand in the real estate sector and generate new employment opportunities in construction and allied industries. The move will also give a strong push to India’s housing sector and provide meaningful relief to people, particularly middle-class families.
The impact of these reforms is expected to be far-reaching. By making construction materials more affordable, the government aims to stimulate the real estate market and support the growth of the construction industry. This will not only benefit homebuyers but also contribute to the overall economic development of the country.
In conclusion, the GST Council’s decision to reduce rates on key housing materials is a welcome step that aligns with the government’s goal of making housing more affordable and accessible. It is a move that is likely to have a positive impact on the lives of millions of Indians, especially those in the middle class who are looking to build or buy their own homes.
Frequently Asked Questions
What is the new GST rate for cement?
The new GST rate for cement has been reduced from 28 percent to 18 percent.
How much has the GST rate been reduced for marble and granite blocks?
The GST rate for marble and granite blocks has been reduced from 12 percent to 5 percent.
What is the expected impact of these GST reforms on the housing sector?
The expected impact is a reduction in the overall cost of construction, making homes more affordable and stimulating demand in the real estate sector.
Who will benefit the most from these GST reforms?
Middle-class families and homebuyers will benefit the most from these GST reforms, as the reduced costs will make housing more affordable.
Will the reduction in GST rates create new job opportunities?
Yes, the reduction in GST rates is expected to boost demand in the real estate sector, leading to the creation of new employment opportunities in construction and related industries.
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