Big Boost! Real Estate Cheers Cement GST Cut, Demands More Housing Reforms:

Big Boost! Real Estate Cheers Cement GST Cut, Demands More Housing Reforms The Confederation of Real Estate Developers' Associations of India (CREDAI) announced on Thursday that the GST rate on cement will be reduced to 18%; earlier it was 28%. This will result in lowering of construction cost, benefiting consumers and the real estate industry. The Confederation of Real Estate Developers Associations of India acclaimed the government's decision to simplify the GST rate structure, reducing it to two; previously it was four. CREDAI President Shekhar Patel said, "The reduction in GST on cement to 18% from 28% is a landmark move that will have a transformative impact on the real estate and construction sector." He added that this reduction would help bring down the overall cost of raw materials, ultimately benefiting homeowners and enhancing housing affordability.

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One of the association's presidents said that the new reform introduced alongside these rate changes marks a positive step towards a more transparent and efficient tax regime which will result in better GST compliance and increased revenue collections. Developers sees the new reform as improving project feasibility, as this relief lowers the input cost as well as strengthens project feasibility. Industry estimates total construction costs could decline up to 5%. This will improve margins, as well as better pricing for end-users. One of the presidents urged the government to address the industry's long-standing demand for retaining the 1% GST slab on affordable housing while rationalizing the Rs. 45 lakh price cap. He added that by 2030 this could accelerate the Housing for All.