Lower GST on Cement: A Boon for the Real Estate Sector

New Delhi: The Confederation of Real Estate Developers' Associations of India (CREDAI) has expressed its satisfaction with the government's decision to reduce the Goods and Services Tax (GST) rate on cement from 28% to 18%. This significant reduction is expected to have a positive impact on the construction and real estate sectors by lowering the overall cost of raw materials.

The move to simplify the GST rate structure, reducing it from four tiers to two, is a commendable reform that will bring substantial relief to all sections of society. CREDAI President Shekhar Patel hailed this decision, stating that it is expected to further ease inflationary pressures.

“The reduction in GST on cement from 28% to 18% is a landmark move that will have a transformative impact on the real estate and construction sectors,” Patel emphasized. This reduction will help bring down the overall cost of raw materials, ultimately benefiting homebuyers and boosting housing affordability.

Patel further noted that the process reforms announced alongside these rate changes mark a positive step towards a more transparent and efficient tax regime. “This is likely to result in improved GST compliance and increased revenue collections,” he added.

The real estate sector, which has been facing several challenges, including high input costs and a slowdown in demand, is expected to see a significant boost from this reduction in GST. The lower construction costs will make it more feasible for developers to offer affordable housing options, thereby addressing the housing needs of a larger segment of the population.

CREDAI's support for the government's decision reflects the industry's recognition of the positive impact that such reforms can have on the economy. The association is optimistic that this move will not only benefit the real estate sector but also contribute to the overall economic growth of the country.

In conclusion, the reduction in GST on cement is a welcome step that is expected to have far-reaching benefits for the real estate and construction industries. It is a clear indication of the government's commitment to supporting the sector and ensuring that it remains a key driver of economic growth.