Housing Ministry hails GST cuts as boost to urban growth

The Ministry of Housing and Urban Affairs (MoHUA) has welcomed the recent reduction in goods and services tax (GST) rates on key construction materials, calling it a significant step toward making housing more affordable, lowering infrastructure costs and creating new jobs.

- POST NEWS NETWORK

The ministry said the move aligns with the government's Housing for All mission and will also support smart cities, metro projects and other urban infrastructure initiatives.

Among the most notable changes, the GST rate on cement has been cut from 28 per cent to 18 per cent. Cement is one of the largest input costs in construction, accounting for 15 per cent to 20 per cent of building expenses and about 11 per cent of overall project costs.

According to the ministry, this reduction will lower the cost of both public and private projects, increase the efficiency of government spending and encourage affordable housing schemes such as the Pradhan Mantri Awas Yojana (Urban).