GST Rationalisation and Supportive Monetary Policy to Boost India’s Housing Market: Mr Samyak Jain, Director, Siddha Group

By reducing costs and stimulating demand, GST reform will accelerate India’s housing market and complement infrastructure-led development

“The GST Council’s latest rationalisation is not just India’s biggest tax overhaul since 2017—it is a reform with far-reaching impact on housing and construction.

By reducing slabs to a simpler two-tier structure and eliminating ambiguity on rates, the Council has created a transparent, efficient system that will help both consumers and businesses.
For households, lower GST on essentials and FMCG products will free up disposable income, directly boosting confidence to invest in big-ticket purchases like homes.

For the housing and construction sector, the benefits are both direct and significant. With key input materials such as paints, tiles, electricals, fittings, and other consumer durables moving from the 28% slab to 18%, the overall cost of construction is set to ease.

This reform comes at an opportune time, as urban centres like Mumbai are already witnessing robust demand, powered by infrastructure upgrades, rising employment opportunities, and a shift towards aspirational housing.

The reforms also align with a strategically important period, coinciding with Navratri and the festive season, which has historically been a good period for property sales.

Moreover, the broader monetary environment is supportive. Given current conditions, RBI is likely to hold rates in September, choosing to weigh the full effects of previous easing.

Together with GST rationalisation, these factors will enhance affordability, strengthen buyer confidence, and support sustained growth in India’s housing market.”

— Mr Samyak Jain, Director, Siddha Group