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 percent to 18 percent on cement and marbles, and from 12 percent to 5 percent on granite blocks, would lead to an overall decrease in the final cost of housing units, benefiting first-time homebuyers significantly.
Karishmah Siingh, President - Sales, Marketing & CRM, Sattva Group:
"This GST reduction on cement represents a pivotal reform that fundamentally shifts the affordability equation for Indian homebuyers. With Rs. 12-15 per square foot in direct savings, builders now have the flexibility to pass on meaningful cost reductions to end consumers, making homeownership a realistic aspiration rather than a distant dream. What's particularly compelling is how this creates a virtuous cycle as construction costs become more manageable, developers can price their projects more competitively, which in turn encourages fence-sitting buyers to move from aspiration to action. The immediate market enthusiasm reflects a broader confidence that we're entering a phase where homebuying decisions will be driven by genuine affordability rather than constrained by inflated input costs. This reform essentially removes a major psychological barrier for homebuyers who have been waiting for the right moment to invest in their future".
Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF):
"The GST rate rationalisation is expected to streamline compliance across industries, enhance operational efficiency, and strengthen tax collections. By stimulating demand in core sectors such as real estate, infrastructure, agriculture, automobiles, healthcare, and education—key pillars of India’s economy—this timely reform is set to boost overall economic activity. It also comes at an opportune moment, paving the way for increased consumption during the upcoming festive season".
Sanjeevini Group Chairman and Founder, Umesh Gowda H.A
"The next-gen GST reforms aided by declining interest rates will spur consumption demand, bolster the real estate sector and give a boost to the economy. The upcoming festive season may see developers pass on some benefits to the homebuyers to accelerate sales in view of a weak first half of 2025".
Vijay Harsh Jha, Founder and CEO of VS Realtors
"The cut in GST rate on cement will provide the much-needed fillip to the affordable housing sector, which off late has seen considerable reduction in supply with developers refraining from launching new project due to rising cost and reduced viability. This move will further accelerate the ongoing infrastructure development providing a broader stimulus to the economy and India’s growth story".
Karthik Mani, Partner, Indirect Tax, BDO India
"Apart from rate rationalisation, the GST Council has also made some important changes in the GST laws to ease the process of obtaining registrations for small businesses supplying through e-commerce platforms and also for quick grant of refunds on provisional basis. Another important announcement is commencement of filing appeals before the GSTAT by September and commencement of hearing before the end of the calender year, which resolves a long standing demand of the taxpayers."
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