Cement tax is now 18 percent, down from 28 percent. Marble and granite taxes dropped from 12 percent to 5 percent. Developers expect housing to be more affordable. This will boost buyer confidence. The Goods and Services Tax (GST) Council simplified rates. They created a two-tier system: 5 percent and 18 percent. This is a major reform for Indian real estate. Changes took effect on September 22, 2025. Cement GST fell to 18 percent. Marble and granite taxes are now 5 percent.
Anarock Research predicts cost savings of 3-5 percent. This is crucial for affordable housing. Margins are tight in this sector. The changes should make compliance easier. Projects will be more viable. Developers and buyers feel more encouraged. This is happening during the festive season. Interest rates are stable. Demand is growing.
Leading developers share their views below. They discuss the reform’s impact.
Developers Applaud Cost Relief
Mohit Goel, Omaxe MD, praised the reform. He called the two-slab GST structure timely. Lower rates on cement and stone help construction costs. This makes housing more affordable. It simplifies rules for builders. The timing is good. Stable interest rates and festive cheer boost demand. Omaxe sees this as a chance to grow. They focus on sustainable communities. This includes cities like Chandigarh and Lucknow. The tax changes benefit buyers. They also help the housing sector. This will drive investment and jobs. It builds confidence in India’s cities.
Aditya Kushwaha, Axis Ecorp CEO, agreed. The GST cuts offer a needed boost. Lower input costs allow better homes. Projects remain profitable. In Goa, second home demand is rising. This move supports steady growth. It makes lifestyle real estate attractive. It also supports well-planned holiday homes. These offer good value and rental income.
Amrita Gupta, Manglam Group Director, noted the festive season. It always drives home buying. The GST cuts enhance this. Lower taxes on marble, granite, and cement mean reduced costs. This helps control prices. Buyers gain confidence in affordability. Builders can buy materials faster. This creates better value. In Jaipur, families seek lifestyle homes. They often buy during auspicious times. Mid-range and lifestyle housing is popular. Banks offer festive loan deals. This creates momentum.
Akash Kohli, Elante Group Founder, commented on GST.