The 56th meeting of the Goods and Services Tax (GST) Council has approved the reforms that were announced by Prime Minister Shri Narendra Modi on 15th August 2025. These reforms are being considered landmark as they focus on providing major relief to the common man of India by reducing the tax burden on essential goods and services, simplifying compliance for businesses, and promoting overall economic growth.

India’s real estate sector has welcomed the move enthusiastically. Experts have particularly noted that the reduction of GST from 28% to 18% on cement and marbles, and from 12% to 5% on granite blocks, would lead to an overall decrease in the final cost of housing units, benefiting homebuyers significantly.

“We wholeheartedly welcome the GST Council’s move on rate rationalisation ahead of the festive season. By reducing the tax burden, the move comes as a major relief for the common man. The housing sector, particularly, stands to benefit from GST reduction on input materials like cement from 28% to 18% and granite blocks from 12% to 5%, as this will ultimately reduce home prices for consumers and create sustainable demand across segments,” said Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.

“This reform gives a major push to the housing sector making homeownership more accessible for a wider population,” he added.

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The GST Council’s decision to approve the implementation of next-generation GST reforms is a crucial step towards simplifying India’s tax structure and boosting economic growth. For real estate, these reforms are particularly significant as they will directly benefit from reduced taxes on raw materials like cement and marble blocks, lowering the cost of constructing homes, ensuring easier compliance for developers, and improving overall affordability for homebuyers.”

Mr. Sumit Agarwal, Director, Ashtech Group, said, “The government’s move to reduce GST on cement, marble, and other key inputs will significantly reduce construction costs in both real estate and infrastructure. This is a significant step that is expected to not only ease the burden on developers but also stimulate demand and give a strong boost to the industry as a whole.”

Mr. Vikas Bhasin, Managing Director, Saya Group, said, “We welcome the government’s decision on broad GST rate rationalization, which will benefit the public at large.

The reduction of GST on cement is also a positive step and will help ease construction costs. However, it is important to note that construction materials account for only about 25–30% of the overall cost of real estate projects, and cement is just one of the many inputs. Therefore, the impact of this move on end prices will be limited.”

Mr. Deepak Kumar Jain, Founder and CEO of TaxManager.in, said, “Real estate, being one of the most labour-intensive sectors, is expected to gain significantly from the reduction of GST rates—from 28% to 18%—on key construction materials such as cement, tiles, and other inputs. This move will help lower overall construction costs to some extent. It is also expected that developers will pass on these benefits to homebuyers by reducing property prices, which have risen sharply over the past few years.”