Due to GST reform, the tax on cement has increased from 28 to 18 percent, which will reduce the cost of homes.
On September 3, the GST Council decided to reduce the tax rate on cement from 28 per cent to 18 per cent. The move is expected to promote the real estate sector. Experts say that the affordable housing sector will benefit the most. Home buyers will get the benefit of low construction cost. Due to which the houses will be more accessible and the government’s “housing for all” mission will be strengthened. Let us also tell you what the experts related to real estate have to say on this decision of the government and how the common people will get the benefit of this.
Home buyers will benefit
Hiranandani and Naradco National President Narajan Hiranandani said that for real estate and infra sector, it is a historical reform to reduce GST from 28 per cent to 18 per cent on important construction materials like cement. This will reduce the cost significantly, improve the viability of the projects and there will be a boom in infrastructure development across the country. He said that affordable housing, especially, would be beneficial because the benefit of construction cost reduction can be given to home buyers, which will make the houses more accessible and at the same time the mission of the government’s ‘housing for all’ will be boosted. This reform is not only a boost for developers, but is also beneficial for consumers, housing sectors and India’s long -term development saga. He further said that reforming GST is a festive gift for Indian consumers and a strategic boost for economy.
Economy will get boost
National President President of Naradco G Hari Babu said that the time of this decision is equally important. This decision announced during the festive season will improve the consumer sentiment and create new demand. This will strengthen the economy, support home buyers and encourage developers. He said that it is beneficial for consumers, real estate sector and country’s growth story, all. We see it as a progressive step that will give long -term speed to the Indian economy. Deepak Kumar Jain, founder and CEO of Taxmanager.in, said in HT’s report that real estate, which is one of the most labor-dominated areas, is expected to benefit considerably by decreasing GST rates on major construction materials like cement from 28 per cent to 18 per cent. This step will help reduce the total construction cost to some extent.
This was announced by Nirmala Sitharaman
In the 56th GST Council meeting, it was decided to rationalize GST rates in two slabs of 5 percent and 18 percent, including 12 percent and 28 percent rates. Addressing the media after the council meeting on 3 September, Union Finance Minister Nirmala Sitharaman said that first I would like to say that the Hon’ble Prime Minister gave a speech from the Red Fort on August 15 and set a new direction for the next generation in the sector of the reform. He expressed his wish that we should benefit people as soon as possible. This improvement is not based only on rationalization of rates.
It is also based on structural reforms. It is also based on making life easier, so that businesses can easily do their business with GST. He further said that we have corrected the problems of reverse fee structure. We have solved classification related problems and have ensured stability and prevention. We have reduced slabs. Now there will be only two slabs, and we are focusing on compensation, simplification of life, simplifying registration, filing returns and refund issues.