GST Rate Cut on Cement to Boost Real Estate and Construction Sectors
The Confederation of Real Estate Developers' Associations of India (CREDAI) has welcomed the government's decision to reduce the GST rate on cement from 28% to 18%. This move is expected to lower construction costs, benefit homebuyers, and enhance housing affordability.
Gst ReductionCementReal EstateConstruction CostHousing AffordabilityReal Estate NewsSep 04, 2025
CREDAI President Shekhar Patel lauded the government's move, stating that this reduction in GST on cement is a landmark decision that will have a transformative effect on the industry. The reduction is part of a broader initiative to simplify the GST rate structure, which has been streamlined from four tiers to two. This rationalization is seen as a commendable reform that will provide substantial relief to all sections of society and is expected to ease inflationary pressures.
Patel emphasized that the reduction in the GST rate on cement will help bring down the overall cost of raw materials, which is a critical factor in the construction process. This, in turn, will benefit homebuyers by making housing more affordable. The real estate sector has been grappling with high construction costs, and this move is expected to provide some much-needed relief.
Moreover, Patel highlighted that the process reforms announced alongside these rate changes represent a positive step towards a more transparent and efficient tax regime. This is likely to result in improved GST compliance and increased revenue collections, further strengthening the financial health of the industry.
The real estate and construction sectors are vital components of the Indian economy, contributing significantly to job creation and economic growth. By reducing the GST rate on cement, the government is not only addressing the immediate concerns of the industry but also laying the foundation for long-term sustainable growth. This move is expected to boost investor confidence and attract more investment into the sector, ultimately leading to the development of more affordable housing projects and a stronger real estate market.
In conclusion, the reduction in the GST rate on cement from 28% to 18% is a welcome step that aligns with the government's goal of making housing more accessible and affordable for all. It is a move that is likely to have far-reaching benefits for the real estate and construction sectors, as well as for the broader Indian economy.
Frequently Asked Questions
What is the new GST rate on cement?
The new GST rate on cement has been reduced from 28% to 18%.
Who is CREDAI?
CREDAI stands for the Confederation of Real Estate Developers' Associations of India. It is a national-level apex body representing the interests of real estate developers in India.
How will the GST reduction on cement benefit homebuyers?
The reduction in GST on cement will lower the overall cost of raw materials, which is expected to make housing more affordable for homebuyers.
What other reforms are being introduced alongside the GST rate changes?
Alongside the GST rate changes, the government has introduced process reforms aimed at improving transparency and efficiency in the tax regime. These reforms are expected to enhance GST compliance and increase revenue collections.
What is the expected impact on the real estate and construction sectors?
The reduction in GST on cement is expected to lower construction costs, boost investor confidence, and lead to the development of more affordable housing projects, ultimately strengthening the real estate and construction sectors.
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