GST on cement to drop from 28% to 18%

Business Sep 20, 2025

From Monday, GST on cement drops from 28% to 18%, making a standard 50kg bag about ₹30-35 cheaper.
The goal? Lower construction costs and support demand in the affordable segment, which has been tepid in recent times.

Developers are waiting for manufacturers' updates

The tax cut covers cement, but manufacturers haven't said how much of the savings will actually reach builders.
Developers are hoping for clear answers by early October so they can update project prices—and maybe pass on benefits to buyers.

Impact on ongoing projects

If you've invested in a project that's just getting started, you might see lower prices because cement is a big chunk of early costs.
But if your project is nearly finished, this GST cut probably won't make much difference right now.