Quote by Mr. Venkatesh Gopalakrishnan - Director Group Promoter’s Office, MD - Shapoorji Pallonji Real Estate (SPRE), regarding the recent announcement on GST.

“We welcome the GST Council’s landmark decision to rationalise tax rates on essential construction materials. The rate cut from 28% to 18% on cement, and from 12% to 5% on construction and finishing materials, is a strategic move. It will significantly ease project costs for developers and boost affordability for homebuyers. For developers, this relief lowers input costs and strengthens project viability. Industry voices estimate that overall construction costs could decline up to 5%. This offers scope for improved margins, as well as better pricing for end-users.

From the perspective of the housing market, especially the affordable and mid-income segments, this development is timely and impactful. Rising construction costs and pressure on margins have presented significant challenges to the sector. The potential pass-through of savings will encourage renewed demand. It will also enable more accessible homeownership.

At Shapoorji Pallonji Real Estate, we see this GST rationalisation as a much-needed stimulus. It simplifies tax structures and enhances transparency. It also aligns with the current positive buyer sentiment. We are optimistic that this reform will enhance purchase intent. This is especially true as we enter the festive season, a traditionally strong period for the real estate market.”

Anupama Reddy - Vice President & Co-Group Head, ICRA

"Rural housing will be a key beneficiary from the Government’s decision to reduce GST on cement from 28% to 18% . With cement accounting for nearly 10-12% of total construction costs in rural housing, this tax cut translates into a 0.8%–1.0% reduction in overall construction expenses. This provides some relief to low-income families and supports the broader Housing for All mission. The price benefit of Rs 26-28/bag will be transferred to retail customer, without materially affecting profitability of cement manufacturers. The timing of this move is also strategic, aligning with the seasonal surge (post monsoon period) in the construction activity across rural and semi-urban regions."