In its 56th meeting on September 3, 2025, the GST Council announced sweeping reforms, slashing tax rates on key construction inputs and simplifying slabs from four to two—5 per cent and 18 per cent. Cement now attracts 18 per cent GST, down from 28 per cent, while marble, granite blocks, and sand-lime bricks have been cut from 12 per cent to 5 per cent. The reforms, described as “next-generation GST,” are expected to lower costs, improve affordability, and spur demand across housing, infrastructure, logistics, energy, and manufacturing. 

Industry leaders welcomed the move as timely and transformative. 

Kamal Khetan, Chairman & Managing Director, Sunteck Realty, said, “The GST cut on cement and other construction materials is a landmark step that directly lowers the cost of construction. This reduction enables developers to maintain price stability and pass on the benefit to homebuyers through improved affordability.” 

From the developers’ body, NAREDCO Maharashtra President Prashant Sharma said, “Bringing essential construction materials—particularly cement—from 28 per cent down to 18 per cent delivers significant cost relief across the construction value chain.” Kaushal Agarwal of The Guardians Advisory added, “The shift to a two-slab GST regime is a welcome structural reform. Simplified taxation not only streamlines compliance, but enables faster project execution.” 

Developers echoed the sentiment. Vikas Jain of Labdhi Lifestyle called it “a landmark move by the Government”, while Navin Makhija of The Wadhwa Group noted, “Reduction of GST on almost 80% of the products will leave a greater spending power in the hands of consumers.” Shraddha Kedia-Agarwal of Transcon Developers said, “This rationalization of GST is a milestone decision that eases cost burdens for developers and promises relief for homebuyers.” 

Other realty voices pointed to demand momentum. Aman Sharma of Aarize Group said, “Cement alone contributes nearly one-third of overall construction costs, and its rate reduction from 28 per cent to 18 per cent will directly enhance cost efficiency for developers.” Eldeco Group CEO Manish Jaiswal noted, “In our field projects today, we estimate construction savings of around 5%, which—if passed through—could significantly improve affordability.” 

CREDAI-MCHI President Sukhraj Nahar welcomed the cut but urged further clarity: “While the cost relief to developers and homebuyers is modest at this stage, this is a step in the right direction towards improving affordability and enhancing housing demand.” 

On the luxury housing side, Harsh Jagwani of Notandas Realty said, “With stable repo rates by the RBI as well as these cuts, we can expect the upcoming festive season to witness huge growth in sales.” Signature Global’s Pradeep Aggarwal added, “By reducing the tax burden, the move comes as a major relief for the common man.” 

Infrastructure players were equally buoyant. Sorab Agarwal of ACE said, “The reduction in GST on key building materials is expected to significantly ease input costs, accelerate project execution, and provide much-needed momentum to the sector.” Rodic Digital & Advisory MD Nagendra Nath Sinha said, “This change will cut material tax burden by about 10 per cent and help in saving nearly Rs 10 lakh on every Rs 1 crore spent.” 

In logistics, Rizwan Soomar, CEO & MD, DP World, said, “The landmark reform will catalyse Government’s thrust on reducing the logistics cost by lowering GST on trucks, tyres, and cement, reducing freight and infrastructure costs and creating efficiencies across supply chains.” 

Cement and allied industries also applauded. Parmod Sagar of RHI Magnesita India said, “The new GST rate for cement is a timely and welcome step aimed at fueling India’s economy through the infrastructure sector.” Dharmender Tuteja of Dalmia Bharat noted, “Reduced prices of cement and higher purchasing power specially increase the affordability of housing for middle- & lower-income groups.” 

In manufacturing, Mahesh Viswanathan of Finolex Cables said, “The GST Council’s move to simplify tax slabs will bring significant efficiency to industries like ours, where large supplier and dealer networks are integral to business.” 

Energy companies highlighted the green transition. Naresh Kumar of Lauritz Knudsen Electrical and Automation said, “The GST reduction from 12 per cent to 5 per cent on renewable energy equipment and agricultural machinery lowers upfront costs. This will make green technologies more easily available and accessible across India.” Vivek Bhatia of TKIL Industries added, “Cutting GST on renewable devices and fuel-cell vehicles aligns India with its decarbonization strategy.” 

From commercial real estate, Aashit Verma of Hanto Workspace said, “On the commercial side, rationalisation will reduce capex load, which can accelerate the pace of Grade-A office, retail, and hospitality developments.” 

Coworking operators echoed this optimism. Manas Mehrotra of 315Work Avenue said, “Although GST input credits are available, the upfront outflow of GST has historically placed pressure on working capital. This will help coworking operators plan growth more efficiently and expand further.” 

Shapoorji Pallonji Real Estate’s Venkatesh Gopalakrishnan summed it up: “The rate cut from 28 per cent to 18 per cent on cement, and from 12 per cent to 5 per cent on construction and finishing materials, is a strategic move. It will significantly ease project costs for developers and boost affordability for homebuyers.” 

With the festive season around the corner, industry leaders say the reforms could mark a turning point for housing affordability, infrastructure execution, and green energy adoption—positioning India’s economy for sustained momentum.