GST Slash on Construction Materials to Boost Sector: CREDAI

Fast Summary

• Gurugubelli Raju, CREDAI-Srikakulam town president, expressed optimism about the Union government’s reduction of GST on cement and construction materials from 28% to 18%.
• The GST cut is expected to lower construction costs significantly, with an estimated ₹35 to ₹40 deduction per bag of cement.Buyers could potentially benefit from more affordable property prices.
• Raju emphasized that cement manufacturers should pass on the GST benefits to ensure buyers receive tangible advantages.
• He also praised the Andhra pradesh State government for relaxing norms for high-rise buildings and waiving NALA (Non-Agricultural Lands Assessment) charges, which could reduce apartment costs by approximately ₹3 lakh to ₹4 lakh each.
• These changes are anticipated to revive stalled real estate projects in Srikakulam and boost the sector overall.

Indian Opinion Analysis
The reduction in GST rates on cement marks a strategic policy move aimed at revitalizing India’s real estate sector by easing cost burdens on developers and buyers alike. For regions like Srikakulam, where development often lags due to affordability concerns, this decision could provide importent momentum for both new projects and those previously stalled due to high input costs. The synergy between central tax reform and state-level relaxations-such as easing high-rise building norms or eliminating NALA charges-reflects a coordinated approach toward fostering sectoral growth.

However, prosperous implementation hinges on whether manufacturers transfer their cost savings onto developers and whether builders extend meaningful discounts to buyers-a chain reaction critical for broader economic impact.

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