Effects of GST Reforms on Owning a Home

The 56th meeting of the GST Council, chaired by Union Finance Minister Smt. Nirmala Sitharaman, has introduced Next-Gen GST reforms aimed at simplifying the tax structure and making life easier for the common man. These reforms are not just about numbers—they’re about empowering citizens, boosting economic growth, and making home ownership more affordable and accessible.

The 7 Pillars of GST Reform

The Council’s vision is anchored in seven key pillars:

1. Simplification of Tax Structure

2. Ease of Compliance

3. Support for MSMEs & Startups

4. Boost to Manufacturing & Exports

5. Affordability for Households

6. Job Creation through Real Estate & Construction

7. Fairness in Luxury & Sin Goods Taxation

 

Construction Costs: A Direct Impact on Home Prices

One of the most impactful changes is the reduction in GST rates on construction materials, which directly affects the cost of building homes and infrastructure.

Revised GST Rates:

• Cement: 28% → 18%

• Marble, Granite, Sand-lime bricks: 12% → 5%

• Bamboo flooring, wooden pallets: 12% → 5%

According to Anuj Puri, Chairman of Anarock Group, this could reduce construction costs by 3–5%, making homes more affordable and boosting demand in the real estate sector. This move is also expected to create jobs and stimulate housing development, especially in Tier 2 and Tier 3 cities.

 

Furnishing a Home: Lower Costs, Higher Comfort

Beyond construction, the GST reforms also address the cost of furnishing and equipping a new home, making it easier for families to settle in comfortably.

Textiles & Handicrafts

• Manmade fibre: 18% → 5%

• Manmade yarn: 12% → 5%

• Handicraft idols, sculptures, dolls & toys: 12% → 5%

This not only reduces furnishing costs but also supports artisans, preserves cultural heritage, and boosts rural economies.

Electronics & Appliances

• TVs (LCD/LED > 32”), Air Conditioners, Dishwashers: 28% → 18%

These changes make essential and lifestyle appliances more affordable, while also strengthening India’s electronics manufacturing ecosystem.

 

The Bottom Line: Home Ownership Gets a Boost

From bricks to bedsheets, and from cement to consumer electronics, the latest GST reforms are designed to reduce the overall cost of owning a home. Whether you're a first-time buyer, a middle-class family upgrading your living space, or a young couple setting up your first home, these changes bring real savings and greater accessibility.

Home ownership is no longer a distant dream—it’s becoming a practical reality for millions of Indians.

But for buyers in Bangalore, this advantage would seem to by nullified by Sate government's increasing doubling property registration charges, which will effect the costs of developers to buy lands, also the stamp duty charges are increased to 7.6%.