GST Rate Cuts on Cement & Real Estate – 56th GST Council Meeting
The 56th GST Council Meeting, chaired by Finance Minister Nirmala Sitharaman on 3rd September 2025, has given a historic boost to India’s real estate and construction industry. By cutting GST rates on cement, tiles, marble, granite, plywood, paints, and sanitary fittings, the Council has reduced the overall cost of construction, housing, and infrastructure projects.
The new GST rates will take effect from 22nd September 2025, and are expected to directly benefit developers, contractors, and homebuyers.
🏗️ GST Rate Cut on Cement
Cement has been one of the highest-taxed construction materials since the implementation of GST in 2017.
- Old GST Rate: 28%
- New GST Rate: 18%
✅ This single change will reduce the cost of housing projects, metro rail works, highways, and industrial construction by 3–5%.
🪨 GST Rate Reductions on Marble, Granite & Tiles
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Marble & Granite
- Old Rate: 28%
- New Rate: 12%
-
Ceramic Tiles & Flooring Products
- Old Rate: 28%
- New Rate: 18%
✅ With these cuts, both premium and mid-range home interiors will become more affordable.
🪵 GST Cuts on Plywood, Sanitary Ware & Paints
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Plywood & Boards
- Old Rate: 28%
- New Rate: 18%
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Sanitary Ware & Fittings (bathroom, kitchen fittings)
- Old Rate: 28%
- New Rate: 18%
-
Paints & Varnishes
- Old Rate: 28%
- New Rate: 18%
✅ Together, these cuts will lower finishing and renovation costs for homes and commercial buildings.
📉 How the GST Cut Impacts Real Estate & Construction
For Developers & Contractors
- Lower input costs on cement, tiles, and fittings mean reduced project costs.
- Builders can pass on savings to buyers or improve project margins.
For Homebuyers
- Apartments and houses under construction will become 3–8% cheaper.
- Interior works like flooring, painting, and bathroom fittings will be more budget-friendly.
For Infrastructure Projects
- Expressways, metro rail, airports, and industrial parks will see reduced costs.
- Faster and cheaper project execution supports India’s infra growth.
🏡 Boost to Affordable Housing & Smart Cities
The GST cuts directly support the government’s flagship projects:
- Pradhan Mantri Awas Yojana (PMAY) – Affordable Housing for All.
- Smart Cities Mission – modern urban infrastructure.
- Highways & Industrial Corridors – lower costs will attract private investments.
✅ Lower GST on construction materials will speed up delivery of affordable flats and large infrastructure projects, benefiting millions of Indians.
FAQs on Real Estate & Construction GST Cuts
Q1. What is the new GST rate on cement?
Cement will now be taxed at 18% instead of 28%, effective from 22nd September 2025.
Q2. Did GST change on marble and tiles?
Yes. Marble & granite are now at 12%, while ceramic tiles are at 18%.
Q3. How much cheaper will housing projects become?
Flat and home construction costs are expected to reduce by 3–8%.
Q4. Do GST cuts apply to paints and sanitary fittings?
Yes. Paints, varnishes, and sanitary fittings will now attract 18% instead of 28%.
Q5. How does this support affordable housing?
Lower GST reduces construction costs, allowing builders to sell homes at more affordable prices under government housing schemes.
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