In 2025, the GST Council cut taxes on key building materials. Cement fell from 28% to 18%. Bricks, tiles, and sand dropped from 18% to 5%. Paints and varnishes went from 28% to 18%. Marble and granite blocks hit 5%. Small drops of 2-3% helped middle-income homebuyers a lot. Festive deals and easy payments boosted the effect.
These changes aided homes priced at ₹50 lakh to ₹1 crore. Savings depend on project phase, buying times, and contracts. Developers may share cuts in 2026 launches. Self-builders on their land saw lower costs and more budget room.
Take Rajesh Kumar, a 38-year-old IT manager in Kolkata’s Salt Lake. He searched for months for an apartment. In early September, a ready project near New Town asked ₹72 lakh for 1,200 sq ft. Booking needed ₹12 lakh down. GST cuts hit. Cement went to 18%, tiles and marble to 5%. By Diwali, the builder gave a ₹1.8 lakh discount on the base price via a relief plan.
The cuts started September 22, 2025. They came at peak festive demand. Builders used savings for discounts, easy payments, and zero-down deals. Not flat price drops.
Savings breakdown: Cement and ready-mix concrete from 28% to 18%. Bricks, tiles, sand from 18% to 5%. Paints and varnishes to 18%. Marble and granite to 5%. A ₹80 lakh flat saves builders ₹2-4 lakh. Buyers get 1-2%, or ₹1-3 lakh.
Builders picked discounts and festive offers over quick cuts.
Binitha Dalal, founder of Mt. K Kapital, said most developers will pass on big shares of savings. They use price tweaks, easy plans, or festive perks. Not instant drops.
Experts note 2-3% savings matter in mid-income buys. Pair them with deals and plans.
Mid-range homes at ₹50 lakh-₹1 crore gained most. They match key schemes.
Vishal Tony Vincent of Aratt Developers said it boosts affordability in that range. Benefits vary by stage, buys, and contracts.
Self-builders win too. Cuts lower home build costs.
For 100 bags of 50 kg cement at ₹1,000 each, pre-cuts cost ₹28,000 in GST. Now it’s ₹18,000. Save ₹10,000. Marble and granite blocks fell from 12% to 5%. More household wins.
Picture a single-storey 1,000 sq ft home on 300 sq yard plot in a Tier-2 city. Basic materials: cement, steel, tiles, bricks, boards. Plus kitchen and wardrobes.
Vivek Jalan of Tax Connect Advisory says cement is 16% of cost. Bricks 4%, granite 0.5%, boards 1%. On ₹30 lakh total, save ₹80,000 on cement, ₹1.2 lakh on bricks, ₹15,000 on granite, ₹30,000 on boards. Total near ₹60,000. About 2% off.
In 2026, buyers stay alert. Ask for full prices from builders to see real gains. Cement, marble, granite, tiles show cuts best.
Under-construction projects skip quick drops. New launches or material bundles bring wins. Focus on total cost to fit your budget. Lower rates will shape prices better. Negotiate and plan smart.