New Delhi, Sept 19 The GST rate reductions on key construction materials and services are expected to make housing more affordable, reduce infrastructure costs, and create more employment opportunities, according to an official statement issued on Friday.
The reforms are fully aligned with the national mission of Housing for All, and will also support flagship initiatives such as Smart Cities, metro projects, and other urban and rural infrastructure developments by lowering input costs. Additionally, they are set to encourage greater private investment in the construction sector, the statement said.
As part of the GST 2.0 reforms, the tax rate on cement has been reduced from 28 per cent to 18 per cent, which cuts costs that form 15–20 per cent of total building expenses and nearly 11 per cent of overall construction costs.
The reduction in GST on particle boards from 12 per cent to 5 per cent will benefit MSME-driven clusters and promote eco-friendly jute-based housing solutions. Similarly, the reduction in the GST rate on marble & granite blocks from 12 per cent to 5 per cent will result in lowering flooring and finishing costs while sustaining lakhs of jobs in stone-producing states.
The tax rate has also been reduced on job work for bricks & sand lime bricks from 12 per cent to 5 per cent, reducing small house construction costs and supporting MSME-operated brick kilns. Besides, the GST has been cut on effluent treatment services from 12 per cent to 5 per cent, which will encourage CETP adoption, green jobs, and sustainable waste management, the statement added.
The Centre is advancing the goal of "Housing for All" through two flagship schemes. Pradhan Mantri Awas Yojana–Urban (PMAY-U), launched in 2015, provides pucca houses to eligible beneficiaries from the EWS, LIG, and MIG categories, as well as slum dwellers. PMAY–Grameen, introduced in 2016, aims to provide pucca houses with basic amenities to houseless households and those living in kutcha or dilapidated homes in rural areas. Both schemes are implemented in convergence with initiatives like Swachh Bharat Mission, Saubhagya, and Ujjwala Yojana, ensuring beneficiaries also have access to toilets, electricity, and clean cooking fuel. This integrated approach promotes affordable housing while improving the overall quality of life.
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