TyTil Realty Services LLP

GST 2.0, launched in September 2025, marks a watershed for  Indian real estate , shifting from a four-slab system (5%, 12%, 18%, 28%) to a streamlined two-slab structure—5% (merit goods, including  affordable housing   and domestic marble) and 18% (standard rate for most goods and services), with luxury and “sin goods” at 40%   The Essentials You Should Know Key construction materials such as cement, tiles, and paints dropped from 28% to 18%. Essential items like bricks, sand, select piping, and unpolished domestic marble moved to 5%. GST2.0 real estate  on under-construction affordable homes is 1%, and non-affordable homes is 5% which is unchanged, but cheaper to build. Developers now benefit from lower construction costs (est. 3–5% reduction), improved compliance, and easier input tax credit computation. The uniform rates mean greater predictability and transparency for homebuyers, investors, and retailers.   Retail Market Transformation The Indian retail...

In 2025, the Indian government introduced a landmark GST reform aimed at simplifying the tax structure and reducing tax rates on construction materials. This major revision is popularly referred to as GST 2.0, which changed earlier complex multi-rate slabs into a simpler two-slab system. The 5% for merit goods including affordable housing, and 18% standard rate for non-essential goods, with luxury goods retaining a higher slab. Among the materials most impacted are cement, bricks, sand, and paint—basic ingredients of home construction. This tax cut is poised to reshape India's booming  real estate market  by directly lowering construction costs and encouraging affordable housing development, while also subtly influencing mid-segment and luxury home markets. This article explores the impact of GST reduction on these housing segments, providing insights for buyers, developers, and investors in 2025.   Impact of GST Reduction on Affordable Housing GST Affordable housing...