A new Goods and Services Tax (GST) structure began September 22. Most items now fall into the 5% or 18% tax brackets. This benefits household and medical supplies. Construction materials are also taxed less. This will lower building costs. Housing will become more affordable for buyers.
The timing of this change is key. It was announced during the festive season. This should boost shopper confidence. It will create new demand. Homebuyers will feel more encouraged. Developers will also benefit.
Pradeep Aggarwal, founder of Signature Global, praised the GST Council’s move. He said rate changes before the holidays offer relief. “Lowering the tax burden helps ordinary people,” he noted. The housing sector will see gains. Taxes on cement dropped from 28% to 18%. Granite blocks are now taxed at 5%, down from 12%. This will lower home prices. It will also create steady demand.
Dr. Niranjan Hiranandani, Hiranandani Chairman, also welcomed the change. He called GST rationalization a smart economic boost. It increases buying power. It also stimulates spending. Controlling prices is helped too. This reform can lift GDP growth over 8%. Global uncertainty makes this fiscal boost important. It shows India’s economy is strong. It builds trust in India’s growth. Both industry and consumers gain.
Experts agree. Real estate and infrastructure will see lower input costs. This comes from reduced GST on cement and steel. Taxes on these items fell from 28% to 18%. Projects will be more feasible. Infrastructure development will speed up.
Affordable housing will see major benefits. Lower building costs can be passed on. This makes homes more reachable. It supports the government’s goal. The goal is housing for everyone.
G Hari Babu, NAREDCO National President, called GST rationalization vital. He stated it brings relief. Real estate and related businesses benefit greatly. Lower GST on cement and steel cuts costs. Projects become more workable. They move forward faster. Affordable housing gains most. Lower costs mean cheaper homes. This helps the Housing for All goal. The entire housing and building sector profits.
The GST Council’s latest meeting gave real estate a big lift. Homeownership is now easier for more people.
A simpler two-tier tax system will help developers. It makes following rules easier. Transparency will grow. More quality homes will be supplied. Prices will be competitive. This ultimately helps buyers.