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Mr. Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD - Shapoorji Pallonji Real Estate (SPRE)

“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.”

Mr. Vivek Bhatia, Managing Director and CEO -TKIL Industries

“The 56th GST Council reforms are a forward-looking step towards Viksit Bharat!  We welcome the initiative to place more purchasing power in the hands of consumers which will certainly accelerate broad based economic growth!   At a time of global uncertainty, the reforms provide a welcome boost to clean energy and industrial transition.  The cut in GST on cement from 28% to 18% will speed up infrastructure development and make adding capacity more appealing.  Cutting GST on renewable devices and fuel-cell vehicles aligns India with its decarbonization strategy. It gives manufacturers a better case for boosting sustainable solutions. From the perspective of TKIL Industries, these reforms will go far beyond just the tax reduction that will be immediate, but will provide a big positive push, reinforcing our position as the fastest growing leading economy, fast track our growth to becoming the third largest economy, accelerate Make in Bharat, promoting cleaner technology, positioning Bharat as a global leader in the energy transition.  Our congratulations and appreciation to Central and State Government leaders for taking this bold and welcome step!”

Mr. Sorab Agarwal, Executive Director at ACE said, "The GST Council’s decision to revise tax rates is a progressive move for the economy at large. For the construction and infrastructure space, the reduction in GST on key building materials is expected to significantly ease input costs, accelerate project execution, and provide much-needed momentum to the sector. This will not only improve affordability for end-users but also stimulate investments and create stronger linkages across allied industries.

Separately, the reduction of GST on agricultural equipment from 12% to 5% is a landmark decision that will directly benefit farmers and the rural economy. At ACE, we believe that this move encourages us to focus more on the sector mechanisation and enable higher productivity in agriculture. It is well aligned with the government’s vision of doubling farmers’ income and fostering rural prosperity.

Together, these measures will unlock growth across urban and rural sectors, boost economic activity, and strengthen India’s journey towards becoming a more resilient and inclusive economy."

Mr. Nagendra Nath Sinha, MD, Rodic Digital & Advisory, said - " The recent reduction of GST on critical construction materials such as cement and steel from 28% to 18% is a game-changer for India’s infrastructure sectors. With cement and steel forming nearly 40–45% of project costs, this change will cut material tax burden by about 10% and help in saving nearly ₹10 lakh on every ₹1 crore spent. Such savings will make projects more viable, accelerate execution, and boost participation in Public-Private Partnerships. The real estate sector, especially affordable housing, will also benefit as developers pass on cost efficiencies to consumers. Equally important, reduced tax pressure will limit the incentive for informal procurement, strengthening transparency and compliance. Faster refund decisions would also benefit the industry due to improved cash flow and lower interest liability. Furthermore, with simplified tax structures, we can better track investments and reduce reliance on informal procurement channels, enhancing transparency across the sector. We believe this landmark step will accelerate the nation’s infrastructure growth, catalyse real estate momentum, and set new benchmarks for transparency and efficiency. "

Aman Sharma, Managing Director and Founder of Aarize Group, said: The GST Council’s move to slash tax rates on cement and other  construction materials is a landmark step for the sector. Cement alone contributes nearly one-third of overall construction costs, and its rate reduction from 28% to 18% will directly enhance cost efficiency for developers. This will not only accelerate project timelines but also allow developers to channel savings into quality enhancements and sustainable building practices. Importantly, it improves housing affordability for end-users and boosts investor confidence in the long run. Such policy measures provide the necessary impetus for long-term growth in both residential and commercial real estate markets.”

Mr. Manish Jaiswal, CEO, Eldeco Group said, “We welcome the GST Council’s decision to reduce the tax on cement from 28% to 18%, alongside sharp cuts on marble, granite, sand-lime bricks, and inlays. As cement constitutes a large portion of construction budgets, this reprieve stands to ease both developer pressures and buyer costs. In our field projects today, we estimate construction savings of around 5%, which if passed through could significantly improve affordability and margin comfort across mid-income and premium housing products. This reform could be a timely catalyst offering a festive boost to real estate demand and confidence.

Santosh Agarwal, CFO & Executive Director, Alpha Corp Development Limited, said  “The rationalisation of GST slabs represents an important step toward simplifying India’s tax framework and enhancing transparency in the real estate sector. By potentially reducing the tax burden on housing, this reform is expected to strengthen buyer confidence, encouraging more informed and faster decisions. For developers, a predictable and streamlined GST structure could reduce transaction complexities and enable smoother project execution. This reform will provide fresh momentum to the real estate sector, supporting sustained growth and reinforcing India’s position as a dynamic housing market.” 

Subhashendra Kumar, CFO, Trehan Iris, said, "We welcome the move towards a simplified two-slab GST structure of 5% and 18%, which marks a progressive step for the sector. The rationalisation of taxation is expected to lower overall project costs, enabling developers to offer more competitive pricing to homebuyers. At the same time, it will bring greater transparency and streamline compliance, thereby improving operational efficiency. Such policy clarity is likely to reinforce buyer confidence, stimulate demand across the housing market, and lay the foundation for sustained long-term growth for both homebuyers and the real estate industry.”

Mr. Yateesh Wahaal, Director, M3M India, said: The GST rationalisation on cement, steel, and other core construction materials is a welcome and progressive step for the real estate sector. It signals the government’s commitment to supporting infrastructure growth and easing cost pressures in a high-input industry. While the overall impact will unfold over time across various asset classes, this move undoubtedly contributes to a more sustainable and cost-efficient development environment. At M3M India, we are closely evaluating the implications, and remain focused on delivering quality and value across all our projects.

Siraj Saiyed, Director, Arete Group

"The Next-Generation GST Reforms are a progressive stride toward a more inclusive and business-friendly India. With rationalized tax slabs and exemptions on essentials, the reforms reflect a vision that balances economic prudence with social responsibility.

By easing household costs and enhancing financial security, families are empowered to invest in holistic lifestyles where homes stand for wellness and quality of life. The reforms go beyond tax simplification; they help build stronger communities by enabling long-term investments in housing, health, and education.

For businesses, streamlined compliance fosters a climate of innovation and customer-centricity. In the broader vision of Viksit Bharat 2047, these reforms pave the way for inclusive growth.

Sunil Pandita, Chief Division Officer, Nemetschek Group

"The recently approved GST reform bringing a two-tier structure of 5% and 18% from September 22 is a welcome stride towards simplifying taxation in India. For the AEC/O industry, the cut in GST on cement from 28% to 18% and reductions on other key construction materials are crucial.

Such measures will help moderate construction costs, easing pressure on real estate developers and encouraging sustainable infrastructure growth. We with our digital solutions for construction lifecycle management, sees this as a positive momentum that aligns with the broader industry push for cost efficiency and productivity gains. Additionally, lower GST on consumer electronics will aid wider adoption of technology on construction sites. These reforms are timely to help increase demand and investment in India’s growing infrastructure sector, supporting our vision of enabling smarter, more efficient construction through digital transformation."

Akshay Taneja, Managing Director, TDI infrastructure

"The Next‑Generation GST reforms mark a leap toward an inclusive, efficiency‑driven real estate ecosystem. Rationalising GST to two slabs 5% and 18% effective from September 22 removes complexity and reduces costs, especially on core materials like cement, which has dropped from 28% to 18%, translating into savings of nearly ₹30 per bag.

For emerging real estate hubs such as Kundli, this reduction will lower construction costs, encourage new investments, and catalyse job creation especially significant for India's youthful workforce. These reforms go beyond tax cuts as they strengthen India’s urban fabric by enabling sustainable, integrated townships and bolstering Tier 2 and Tier 3 markets in alignment with Viksit Bharat 2047.

These reforms are policy, people, and purpose‑oriented milestones that propels climate‑conscious development, boosts affordable and commercial housing in Delhi‑NCR, and supports the evolution of self‑sustained communities across India."

Mr. Vishal Raheja, Founder and Managing Director, InvestoXpert

"The Next-Generation GST reforms represent a significant advancement for the real estate sector. Simplified taxation and reduced costs on key construction inputs will improve project feasibility and affordability, particularly in rapidly growing urban regions such as Delhi NCR. This is expected to accelerate both ongoing and upcoming developments across residential and commercial spaces.

With compliance made simpler and the tax regime more predictable, developers and investors alike benefit from reduced uncertainty. This clarity supports faster execution, encourages steady capital inflows, and contributes to a healthier supply pipeline for housing and infrastructure.

The reforms align with the vision of Viksit Bharat by fostering inclusive, resilient urbanization while creating an enabling environment for sustainable development across India’s real estate hubs.

Mr. Pratap Alwat, Managing Director, Pranshi Infra Advisor Pvt. Ltd

“The Next-Generation GST reforms are a milestone that balances economic growth with social equity. By simplifying tax structures and exempting essential services, the reforms improve clarity and predictability in the real estate sector. This transparency strengthens the environment for long-term investments and supports more informed decision-making across emerging and established markets.

Reduced compliance burdens also lower operational friction, allowing stakeholders to redirect focus toward strategic planning and value creation. As affordability improves for households, demand across housing and infrastructure is expected to rise, energizing the ecosystem more broadly.

These reforms mark a step toward a future-ready and citizen-centric economy, encouraging transparency, inclusivity, and sustainable growth in line with India’s long-term development vision."