Govt’s move to slash GST on critical construction inputs goes beyond cost savings
The Government’s move to slash GST on critical construction inputs like cement, marble, interiors, and HVAC systems is a landmark reform that goes beyond cost savings, it’s a catalyst for transformation, feel experts.
Mumbai: The Government’s move to slash GST on critical construction inputs like cement, marble, interiors, and HVAC systems is a landmark reform that goes beyond cost savings, it’s a catalyst for transformation, feel experts.
For developers, it means faster execution, improved cash flows, and the freedom to experiment with better design and sustainable solutions. For buyers, especially in tier-2 cities, it bridges the gap between aspiration and affordability, making premium living truly accessible.
Talking to Bizz Buzz, Pyush Lohia, Director, Lohia Worldspace says, “Beyond reducing costs, the policy can spark ripple effects: more timely deliveries, moderated rentals, stronger local employment, and greater investor confidence.” This is not just a boost for real estate and hospitality, it’s a vote of confidence in India’s evolving growth centers. We see this as the beginning of a new chapter in aspirational housing, he said.
The recent GST reduction on construction materials could prove to be a gamechanger for the real estate sector. For example, the tax on cement has been reduced from 28% to 18%, while finishing materials like marble and granite have come down from 12% to 5%.
Anantharam Varayur, Co - Founder Manasum homes says, “This will directly impact construction costs, but the benefits won’t stop there. Developers will gain improved cash flow and the ability to deliver projects on time, thereby boosting buyer confidence.”
Even in smaller cities, premium and durable housing will become more accessible. Additionally, reduced taxes on interiors and sustainable equipment will enhance design and quality, he said.
Ankit Kumar, CEO & Founder, Skye Air says, “The recent GST reforms mark a progressive step towards simplifying India’s tax ecosystem and creating a more startup-friendly environment. By streamlining rates to two slabs—5% and 18%—the government has reduced compliance complexities, minimized classification disputes, and created a predictable framework that will encourage more businesses to register under GST and improve collections despite lower rates.”
For consumers, lower GST on essentials increases disposable income and demand, while startups benefit from enhanced ease of doing business and greater scalability.
