NAREDCO requests govt to reduce GST on raw materials
Real Estate

NAREDCO requests govt to reduce GST on raw materials

The National Real Estate Development Council (NAREDCO) asks the government to reduce the goods and services tax (GST) on raw materials, which include steel and cement.

The Indian real estate industry is facing a huge problem of the increasing prices of raw materials, which include steel and cement. Further according to the developers the 28% GST on both commodities is adding more burden.

NAREDCO West vice president and partner of Prem Group Hitesh Thakkar told the media that imposing a 28% GST on cement and steel from the developers is wrong, especially at a time when the prices of raw materials are already high. The apex real estate body NAREDCO has made representations requesting the government for reducing the GST.

He said that such a high percentage of GST will only impact the end-users who are the homebuyers. The builders will take the profit by increasing the cost of residencies and commercial spaces.

According to the real estate expert Colliers India, the average cost of construction of the developers has risen by 10-12% over the last year. This is mainly due to the higher input cost due to supply-side constraints. The prices of raw materials such as cement and steel have increased by 20% on a yearly basis as of March 2022. These materials constitute a crucial share of the total cost of construction.

In order to express concern regarding the rising prices of raw materials, the Builders Association of India’s (BAI) president Nimesh Patel wrote a letter to PM Narendra Modi about the concerns of the Indian construction industry, especially, the challenges faced in the infrastructure and housing sectors due to the abnormal price rise.

Image Source

Also read: Cost of construction rose by 10-12% over last year: Report

The National Real Estate Development Council (NAREDCO) asks the government to reduce the goods and services tax (GST) on raw materials, which include steel and cement. The Indian real estate industry is facing a huge problem of the increasing prices of raw materials, which include steel and cement. Further according to the developers the 28% GST on both commodities is adding more burden. NAREDCO West vice president and partner of Prem Group Hitesh Thakkar told the media that imposing a 28% GST on cement and steel from the developers is wrong, especially at a time when the prices of raw materials are already high. The apex real estate body NAREDCO has made representations requesting the government for reducing the GST. He said that such a high percentage of GST will only impact the end-users who are the homebuyers. The builders will take the profit by increasing the cost of residencies and commercial spaces. According to the real estate expert Colliers India, the average cost of construction of the developers has risen by 10-12% over the last year. This is mainly due to the higher input cost due to supply-side constraints. The prices of raw materials such as cement and steel have increased by 20% on a yearly basis as of March 2022. These materials constitute a crucial share of the total cost of construction. In order to express concern regarding the rising prices of raw materials, the Builders Association of India’s (BAI) president Nimesh Patel wrote a letter to PM Narendra Modi about the concerns of the Indian construction industry, especially, the challenges faced in the infrastructure and housing sectors due to the abnormal price rise. Image Source Also read: Cost of construction rose by 10-12% over last year: Report

Next Story
Infrastructure Urban

Aadhaar Authentications Cross 27 Billion in FY25

Aadhaar authentication transactions surged past 27.07 billion in FY 2024–25, including 2.47 billion in March alone, reflecting its growing adoption across sectors such as banking, finance, telecom, and public service delivery. Since its inception, the cumulative number of Aadhaar authentication transactions has exceeded 148 billion.The Unique Identification Authority of India’s (UIDAI) AI/ML-based face authentication technology is also witnessing a sharp rise in usage. In March 2025 alone, over 150 million face authentication transactions were recorded. This biometric modality is now used ..

Next Story
Infrastructure Urban

IEPFA Holds Preparatory Meet for 'Niveshak Shivir' Initiative

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, Government of India, hosted a preparatory meeting on April 28, 2025, with Nodal Officers from stakeholder companies via video conference. The session, chaired by IEPFA CEO Smt. Anita Shah Akella, focused on finalising operational plans for the upcoming ""Niveshak Shivir"" initiative—a joint effort between IEPFA and the Securities and Exchange Board of India (SEBI).""Niveshak Shivir"" aims to improve investor services and streamline the claims process by reaching out to cities with a high nu..

Next Story
Infrastructure Urban

India, France Sign Deal for 26 Rafale-Marine Jets for Navy

India and France have signed an Inter-Governmental Agreement (IGA) for the acquisition of 26 Rafale-Marine aircraft for the Indian Navy, comprising 22 single-seater and four twin-seater jets. The deal also includes training systems, simulators, associated equipment, weapons, and performance-based logistics, along with additional equipment for the Indian Air Force’s existing Rafale fleet.The IGA was signed by India’s Defence Minister Rajnath Singh and French Minister of Armed Forces Sébastien Lecornu. The agreement, along with supply protocols for aircraft and weapons, was exchanged in the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?