Good news for home buyers! The government has reduced GST rates cut on key construction materials. This move is likely to lower housing prices and boost the real estate market, especially for mid-income families. Experts believe this GST rate cut will also bring relief to those planning to take home loans in the coming months.
📢 Who Announced the GST Rate Cut on Housing Sector?
The GST Council, India’s top body for indirect tax decisions, announced the GST rate cuts on key construction materials during its 52nd meeting on 3rd September 2025 in New Delhi. Union Finance Minister Nirmala Sitharaman presided over the meeting.
The decision is aimed at lowering input costs in the housing sector and boosting affordability. This reform was officially confirmed through the Ministry of Finance’s press release and leading national business news outlets.
✅ This change aims to make homes more affordable and push growth in the housing sector.
📋 Construction Materials with Changed GST Rates (After Sept 22, 2025)
The government has reduced GST on several construction materials, such as:
| Material / Item | Old GST Rate | New GST Rate | Source / Notes |
|---|---|---|---|
| Cement (including Portland, slag, hydraulic etc.) | 28% | 18% | Declared in GST Council meeting, effective 22 Sept 2025. (The New Indian Express) |
| Granite Blocks | 12% | 5% | Part of stone & finishes GST cut. |
| Marble / Travertine Blocks | 12% | 5% | Included in list of blocks affected. |
| Sand‑Lime Bricks | 12% | 5% | Moved to 5% slab. |
| Stone Inlay Articles (Decorative stone work) | 12% | 5% | Decorative interiors, stone inlay work listed. |
| Natural Sand | Varied (earlier lower one) | 5% | Official rate now 5% for materials like natural sand. (Outlook Money) |
These items earlier attracted 18% GST. After the GST rate cut, the new rate is expected to be 12% or lower (final figures to be notified soon).
This cut is part of the government’s plan to support the housing sector GST rate cut and make homes budget-friendly for Indian families.
According to the GST Council’s decision on 22nd September 2025, GST rates on important construction materials have been reduced. These changes will come into effect immediately and are expected to lower home prices, making it easier for home buyers to afford new houses.
📆 When Will the Changes Apply?
The new GST rates will be applicable from 1st October 2025.
Builders and developers will start adjusting prices soon after, so home buyers may start seeing better deals by the end of the year.
👨👩👧👦 How Will It Help Home Buyers?
The GST cut for home buyers is expected to benefit:
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🔹 Mid-income families directly
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🔹 Premium housing buyers indirectly
With lower material costs, the overall price of new homes may reduce. This means buyers will need smaller home loans, resulting in lower EMIs.
✅ This is great news if you’re planning to buy your first home in 2025.
🏗️ What About Builders and Developers?
The GST cut on housing sector is also expected to boost confidence among developers.
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✅ Construction costs will reduce
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✅ New projects may launch sooner
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✅ Liquidity in the market will improve
Builders will find it easier to manage budgets, which means they can offer better prices to customers.
💬 What Do Experts Say?
According to Manik Malik, CEO of BPTP Group:
“The reduction in GST is expected to make products more affordable, particularly for middle-income groups. It may also boost buyer confidence and improve the pace of new project launches.”
🧮 How Will It Affect Your Home Loan and EMI?
Lower home prices mean:
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You need to borrow less
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Your EMI becomes smaller
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Your total interest also reduces
👉 You can check how much your new EMI will be using our Home Loan EMI Calculator.
| EMI Loan Calculator | Check Loan Eligibility |
Try it now and plan your dream home easily!
❓FAQs
Q1. What is the GST rate cut for construction materials in 2025?
A1: The GST Council has reduced GST on items like cement, steel, and plywood from 18% to around 12% (final rate to be confirmed).
Q2. How will the GST rate cut affect home buyers?
A2: It will lower the cost of new homes, reduce loan amounts needed, and decrease monthly EMIs.
Q3. When will the new GST rates be effective?
A3: The new rates will be applicable from October 1, 2025.
Q4. Does it impact existing home loan borrowers?
A4: No, it only affects new home purchases or upcoming projects where prices are yet to be finalized.
🧠 Conclusion:
The recent GST rate cut on construction materials is a welcome move for both home buyers and real estate developers. As the changes take effect in October 2025, this could be the right time to start planning your home purchase. Lower prices, reduced EMIs, and better market conditions — all signs point to a better future for the housing sector.