GST Council Reduces Rates on Housing Materials: A Boon for the Common Man
The GST Council has announced significant cuts in GST rates on key building materials, providing a much-needed relief to the housing and construction sector. This move is expected to boost demand and create new job opportunities.
GstReal EstateHousingConstructionAffordabilityReal EstateSep 09, 2025
The Government has announced a big relief for the housing and construction sector by reducing GST rates on key building materials. Cement, which earlier attracted 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, reducing the overall cost of homes and infrastructure projects. This will also foster affordability for people looking to buy or build a house. Addressing a press conference on 3rd September, Union Finance Minister Nirmala Sitharaman emphasized that the cut in the rate of housing sector materials will provide significant relief to the people.
Industry stakeholders have welcomed the new GST reforms, stating that the reduction in taxes will provide much-needed relief. They believe 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 reduction in GST rates is expected to have a ripple effect on the economy, making housing more affordable and accessible. It is a step towards achieving the government’s goal of ‘Housing for All’ and will likely stimulate growth in the construction and real estate sectors. This initiative aligns with the broader objective of making India a more prosperous and inclusive nation.
In summary, the GST Council’s decision to reduce rates on key housing materials is a significant step towards making housing more affordable and boosting the economy. It is a win for the common man and a positive signal for the real estate and construction industries.
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 new GST rate for bamboo flooring and wooden joinery?
The new GST rate for bamboo flooring and wooden joinery is 5 percent, down from 12 percent.
How will the reduction in GST rates benefit the housing sector?
The reduction in GST rates will make construction materials cheaper, reducing the overall cost of homes and infrastructure projects, and fostering affordability for middle-class families.
What are the expected economic impacts of these GST reforms?
The expected economic impacts include boosting demand in the real estate sector, generating new employment opportunities in construction and allied industries, and making housing more affordable and accessible.
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