GST Rate Cut on Cement: A Boon for Real Estate

The Confederation of Real Estate Developers' Associations of India (CREDAI) has welcomed the government's decision to reduce the Goods and Services Tax (GST) on cement. The rate, which has been lowered from 28% to 18%, is expected to significantly reduce construction costs, benefiting both developers and consumers in the real estate industry.

Industry experts believe that the reduction could cut construction costs by as much as 5%. CREDAI President Shekhar Patel described the move as 'landmark,' citing its potential to transform the real estate and construction sectors by enhancing affordability and stimulating growth. The rationalisation of GST rates is seen as a significant reform that will ease inflationary pressures and improve tax compliance.

Prominent voices in the industry, such as Parag M Munot from Kalpataru Ltd and Venkatesh Gopalakrishnan from Shapoorji Pallonji Real Estate, echo this sentiment, noting that the reduced rates on essential construction materials could lower procurement costs across the supply chain. The move is anticipated to provide sustained momentum to the real estate sector.

(With inputs from agencies.)