The GST Council has approved a reduction in GST rates on key building materials, providing relief to the housing and construction sector. This move is expected to make construction materials cheaper, reducing the overall cost of homes and infrastructure projects.
The GST rate on cement has been reduced from 28% to 18%, while items like marble, granite blocks, and sand-lime bricks will see a rate reduction from 12% to 5%. Similarly, bamboo flooring, wooden joinery, packing cases, and pallets will now carry a 5% GST instead of 12%. These changes will likely boost demand in the real estate sector and generate new employment opportunities in construction and allied industries.
According to Union Finance Minister Nirmala Sitaraman, the cut in the rate of housing sector is a big relief for people. Industry stakeholders have welcomed the new GST reforms, believing that the reduction in taxes will provide much-needed relief.
The move will also give a strong push to India’s housing sector and provide meaningful relief to people, particularly for middle-class families. With the reduction in GST rates, the housing sector is expected to see increased affordability and demand, ultimately benefiting homebuyers and the construction industry.
