Quick Summary
The Indian government's Next-Gen GST Reforms are set to be implemented from today, i.e. September 22, 2025, following approval from the GST Council led by Finance Minister Nirmala Sitharaman. These reforms aim to simplify India's tax framework, moving from a four-rate system of 5%, 12%, 18%, and 28% to a primarily two-rate system: 5% (merit rate) and 18% (standard rate), along with a 40% special rate for sin and luxury goods. A Game-Changer for Real Estate The reforms are expected to significa
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FAQ :
The Next-Gen GST Reforms are implemented from September 22, 2025.
The reforms are projected to reduce construction costs by 3-5% due to lower GST on key materials like cement.
Affordable housing will have a 1% GST, and non-affordable housing will have a 5% GST, both excluding input tax credit.
Lower construction costs are expected to potentially reduce home prices by 1-1.5%, particularly for affordable and mid-segment housing.
Developers will benefit from reduced GST rates and the ability to claim Input Tax Credit (ITC) on construction materials and services, which helps safeguard margins and pass savings to buyers.
Ready-to-move-in homes with completion certificates, resale properties, and the sale of land are exempt categories.
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