GST Reforms: Festive cheer for homebuyers? How will reduced GST on cement, granite, marble benefit you? Experts decode

GST Reforms: The GST Council on Wednesday made a slew of important announcements, slashing rates of items keeping in mind benefits for common man.

In an early festive cheer for the middle class, Finance Minister Nirmala Sitharaman announced the reduction of GST rates in everyday items. The new GST rates are expected to benefit new homebuyers as well, with the FM slashing GST rate on cement from 28% to 18%. The GST on granite and marble has gone down from 12% to 5%.

According to industry experts, the GST reform on cement, granite and marble GST slab is a boost for the real estate sector. The move is also expected to increase consumption.

GST Reform: Will homebuyers reap the benefits?

According to Anuj Puri, Chairman at Anarock Group, the GST rate reduction on cement can reduce construction costs by 3% to 5%.

“Developers, especially those engages in creating affordable housing, will get major relief in terms of cash flows and margins,” he told LiveMint.

According to Anarock Research, the total sales of flats in the affordable housing category (below ₹40 lakh) have declined from 38% in 2019 to 18% in 2024.

“The share of new supply dropped even more dramatically from 40% in 2019 to just 12% in H1 2025. The reduced construction costs, if passed on to homebuyers, can boost demand in these segments,” Puri said.

Vimal Nadar, Senior Director and Head of Research at Colliers India also agreed that the GST rate reduction on cement will rehaul project cost structure.

“Residential real estate, particularly new homebuyers, stand to gain as developers are likely to pass on the benefit of lower costs in the form of reduced housing prices,” he told LiveMint.

The new GST reforms will be rolled out on September 22, Sitharaman announced on Wednesday.

Nadar called the timing ‘appropriate’.

“The timing of this rollout is appropriate, with the festive season in the offing and the real estate sector is already reaping the benefits of favourable interest rates.”

GST reform on real estate: Benefits for consumers making own houses

The new GST changes will also benefit people who want to make their own home rather than opting for a flat, experts said.

In a statement to LiveMint, Anarock Chairman Anuj Puri said that cement, marble and granite make up 40–45% of the entire cost of construction.

“The new GST rates will also make matters cheaper for anyone who wants to build their own home,” he said.

“If, as we anticipate, construction costs decrease by 3–5% with cement, steel, and other important input costs coming down, individuals building their own homes will save money on these materials,” Puri told LiveMint.

The two-tier GST with just 5% and 18% slabs will also help such consumers how much GST they are liable to pay and plan their budget better, the Anarock Chairman said.

However, as per Kanika Shori Gupta, Co-founder and COO at Square Yards, constructing your own home provides both opportunities and responsibilities.

“The most obvious advantage is the ability to tailor the design, layout, and finishes to your exact needs and preferences, something that pre-built properties seldom allow. On the financial front, managing material sourcing and labour directly can sometimes lower overall costs compared to buying from a developer,” she said.

However, this could get complicated due to a number of reasons, Shori explained.

“It requires time, attention, and expertise in budgeting, approvals, and quality control. Delays, unexpected expenses, and construction risks also fall squarely on the owner,” she told LiveMint.