A steady stream of visitors steps into a property show on the eve of September 21, when the new restructured GST slab system comes into effect. Visitors sat at the tables in the stalls of various real estate developers, listening to the executives explain to them about the features of their existing and upcoming projects. The aspect of GST, however, is not part of the discussions.
“We have decided to absorb the GST ourselves and don’t include it in the overall pricing. It will be intimidating if we add that too,” Sandeep Reddy, a Director in the Aditya Construction Company, told businessline.
“For the two projects, which are ready for occupation, we are not charging any GST. For the third, we have not taken a call yet,” he said.
Under the new GST slab structure, the GST on cement will come down to 18% from 28% Industry experts assess that the overall impact on a property price would be 3-5 per cent.
The South Indian Cement Manufacturers’ Association (SCIMA) felt that the reform would enhance affordability and strengthen industry competitiveness. “Cement being a core input in housing, infrastructure, and industrial projects, the lower tax rate will reduce construction costs, benefiting home builders, affordable housing, and public infrastructure,” . Gopinath, Chief Executive Officer of the SICMA, said.
CG Sathish, Deputy Managing Director, Casagrand, one of the largest real estate developers in the country, said the company has not paused any project launches in anticipation of the GST cut implementation from September 22.
“Our business strategy is anchored in long-term planning and demand dynamics, and all our launches are progressing as scheduled. The GST reduction is a welcome structural reform that will strengthen affordability and sentiment in the medium to long run, but it has not impacted our immediate cycle,” he said.
“The company has not experienced any slowdown in bookings ahead of the GST cut implementation. Housing demand is primarily driven by end-users making long-term decisions, with emphasis on location, quality, and timely delivery,” he added.
According to Ranjeeth Rathod, Managing Director, DRA, a Chennai-based real estate company, the GST announcement has no bearing on the market. “It is marginal. There has been no slowdown and demand is still good. We are launching three projects in the next two months,” he said.
Gopalakrishnan J, ED & Group CEO, Shriram Properties Ltd, said that the GST rate cut was a welcome reform that will further strengthen customer sentiment and add momentum to the housing sector.
“Barring seasonal interruptions (due to inauspicious seasons in the South), we have not seen any slowdown linked to the GST cut itself. In fact, most buyers have continued to take a long-term view, making purchase decisions based on lifestyle needs, financial planning, and the trust they place in developers,” he said.
He, however, felt that the GST cut would reinforce the positive outlook and confidence in the sector’s growth trajectory. “We believe this reform will benefit both homebuyers and developers, creating healthier market dynamics and contributing meaningfully to India’s housing growth story,” he said.
(With inputs from Aishwarya Kumar in Bengaluru)
Published on September 21, 2025