GST 2.0 in Real Estate: What Buyers Need to Know in 2025
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...