GST Council Approves Next-Gen Reforms, Cuts Rates on Cement and Key Construction Materials

GST

INDIA: The 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, has approved a set of Next-Generation GST reforms aimed at simplifying the tax structure and reducing the burden on households, small traders, and businesses.  

Key measures include rate rationalization to a simplified two-slab structure of 5% and 18%, along with sweeping reductions across sectors. The new rates and exemptions will take effect on 22 September 2025, except for tobacco products, for which current GST and compensation cess rates will continue until all outstanding cess liabilities are cleared. 

The housing and construction sector is set to benefit significantly from lower GST rates. Cement rates will be reduced from 28% to 18%, while marble and granite blocks, sand-lime bricks, bamboo flooring, joinery, and wooden packing cases will fall from 12% to 5%. Industry analysts expect these cuts to reduce the cost of homes and infrastructure projects, potentially spurring demand in real estate and generating employment in construction. 

Source: Press Information Bureau