NAREDCO requests govt to reduce GST on raw materials

12 Apr 2022 CW Team

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

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..