Lower GST on Cement: A Boon for the Real Estate Sector
The Confederation of Real Estate Developers' Associations of India (CREDAI) welcomes the government's decision to reduce the GST rate on cement from 28% to 18%. This move is expected to lower construction costs, benefit consumers, and boost the real estate industry.
Gst ReductionReal EstateConstruction CostsHousing AffordabilityCredaiReal EstateSep 04, 2025
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.
Frequently Asked Questions
What is the new GST rate on cement?
The new GST rate on cement has been reduced from 28% to 18%.
How will this reduction benefit the real estate sector?
The reduction in GST on cement will lower construction costs, making it more affordable for developers and ultimately benefiting homebuyers by reducing the cost of housing.
What is CREDAI's stance on this decision?
CREDAI, the Confederation of Real Estate Developers' Associations of India, has welcomed the government's decision, stating that it will have a transformative impact on the real estate and construction sectors.
What other reforms were announced alongside the GST rate changes?
Alongside the GST rate changes, process reforms were announced to improve transparency and efficiency in the tax regime, which is expected to result in better compliance and increased revenue collections.
How will this impact housing affordability?
The lower construction costs due to the reduced GST on cement will make it more feasible for developers to offer affordable housing options, thereby addressing the housing needs of a larger segment of the population.
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