GST Reforms Boost Growth in Real Estate, FMCG, Agriculture, and More
The recent GST reforms have significantly impacted key sectors such as luxury real estate, FMCG, agriculture, and jewelry. Reductions in GST rates on essential materials and products are driving cost savings, boosting demand, and enhancing overall efficiency.
Gst ReformsLuxury Real EstateFmcgAgricultureJewelryReal EstateSep 05, 2025
Cyrus Mody, CEO and Founder of Viceroy Properties, highlights the positive impact of the GST reforms on luxury real estate. The reduction in GST on cement from 28% to 18% and on items like marble and granite from 12% to 5% means that overall construction costs will reduce by nearly 5%, enhancing project efficiencies. At Viceroy Properties, these reforms are seen as an opportunity to elevate the standards of luxury living in India, whether through the use of sustainable materials or delivering high-quality residences that meet global standards. The clarity gained by reducing complexity and developing confidence among investors is expected to attract more discerning homebuyers and investors, especially as the luxury housing demand in India has grown by over 40% in the last two years.
Mr. Shobhit Singh, MD & CEO of Stone Sapphire India Pvt. Ltd., discusses the impact of the revised GST slab on the stationery sector. While customers may expect additional discounts due to the perception of reduced tax, the reality is that compliance expenses remain unchanged, and margins are unlikely to expand. However, a lower GST rate makes stationery more affordable, which could stimulate demand and encourage higher consumption. Over time, this accessibility may balance out margin pressures, creating opportunities for the sector to grow while ensuring consumers benefit from fairer pricing.
Mr. Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd. (RSBL), shares his views on the GST Council’s decision to maintain 3% GST on gold and silver and 5% on jewelry-making charges. For jewellers, this decision brings stability but comes with mixed results. There is no relief on margins, and higher costs may still impact affordability, particularly during the festive season. For investors, the unchanged GST provides clarity and does not disrupt the market, but entry costs remain slightly high compared to global benchmarks. While the decision defends the government’s revenue stream, both jewellers and buyers may feel that their growth opportunities remain limited.
Anuj Thakar, Senior Vice President, India & SAARC, Yokohama-ATG, emphasizes the benefits of the GST reduction for the agricultural sector. The cut in GST from 18% to 5% on tractor tires and tubes, and from 28% to 18% on new pneumatic tires, is a historic reform that will directly benefit farmers and off-highway tire customers in India. As makers of Alliance and Primex Tires, Yokohama-ATG sees this GST reduction as an opportunity to assist consumers in choosing the right application-specific mobility solutions at lower operating costs.
Mr. Haresh Karamchandani, MD & Group CEO of HyFun Foods, welcomes the decision to reduce GST on frozen products to 5%. This step is expected to increase consumption frequency due to affordability implications and create a positive ripple effect on the overall economy by stimulating demand. At HyFun Foods, this is seen as an encouraging development for the agricultural value chain, as increased consumption will support farmers and consumers alike. The larger industry will also benefit from the proposed simplifications in the GST framework, which will streamline compliance and make operations more efficient for all.
In summary, the GST reforms have brought significant benefits to various sectors, from reducing construction costs in luxury real estate to making stationery and frozen products more affordable. These changes are expected to drive growth, enhance efficiency, and support both businesses and consumers in the long run.
Frequently Asked Questions
How do the GST reforms impact luxury real estate?
The GST reforms have reduced the tax on construction materials like cement, marble, and granite, leading to a nearly 5% reduction in overall construction costs. This makes luxury real estate more affordable and attractive to both homebuyers and investors.
What are the benefits of the reduced GST on stationery products?
The reduced GST on stationery products makes them more affordable, which could stimulate demand and encourage higher consumption. However, compliance costs remain unchanged, and margins are unlikely to expand significantly.
How do the GST reforms affect the jewelry industry?
The unchanged GST rates on gold, silver, and jewelry-making charges bring stability to the industry but do not provide relief on margins. This may limit growth opportunities for jewellers and buyers.
What are the benefits of the reduced GST on tractor tires and tubes?
The reduced GST on tractor tires and tubes directly benefits farmers and off-highway tire customers by lowering operating costs. This makes it easier for them to choose the right mobility solutions.
How does the reduced GST on frozen products benefit the FMCG sector?
The reduced GST on frozen products increases their affordability, which can stimulate demand and support both farmers and consumers. It also benefits the larger industry by streamlining compliance and making operations more efficient.
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