What is the GST rate on cement after GST 2.0?

Cement attracts 18% GST under GST 2.0 (effective September 22, 2025), reduced from 28%. Cement forms 15–20% of total construction costs, so this reduction significantly lowers building costs. HSN code 2523.

What is the GST rate on under-construction property?

Under-construction residential properties attract 5% GST (without ITC). Affordable housing (stamp duty value up to ₹45L, carpet area up to 60 sq.m. in metros or 90 sq.m. in non-metros) attracts 1% GST. Ready-to-move-in properties with a completion certificate are exempt from GST.

Is GST applicable on the purchase of a completed flat?

No. Ready-to-move-in flats with a completion certificate are exempt from GST. GST applies only to under-construction properties. This is why many buyers prefer completed properties — no GST, only stamp duty and registration charges.

What is the GST rate on steel?

Steel bars, rods, and structural steel attract 18% GST. HSN code 7213. This rate applies to all types of steel used in construction — TMT bars, structural steel, and stainless steel.

Can a builder claim ITC on construction materials?

Builders constructing residential properties (5% or 1% GST) cannot claim ITC on construction inputs like cement, steel, and labour. This is a blocked credit under Section 17(5) of the CGST Act. Builders of commercial properties (18% GST) can claim full ITC.

What is the GST rate on cement after GST 2.0?

Cement attracts 18% GST under GST 2.0 (effective September 22, 2025), reduced from 28%. Cement forms 15–20% of total construction costs, so this reduction significantly lowers building costs. HSN code 2523.

What is the GST rate on under-construction property?

Under-construction residential properties attract 5% GST (without ITC). Affordable housing (stamp duty value up to ₹45L, carpet area up to 60 sq.m. in metros or 90 sq.m. in non-metros) attracts 1% GST. Ready-to-move-in properties with a completion certificate are exempt from GST.

Is GST applicable on the purchase of a completed flat?

No. Ready-to-move-in flats with a completion certificate are exempt from GST. GST applies only to under-construction properties. This is why many buyers prefer completed properties — no GST, only stamp duty and registration charges.

What is the GST rate on steel?

Steel bars, rods, and structural steel attract 18% GST. HSN code 7213. This rate applies to all types of steel used in construction — TMT bars, structural steel, and stainless steel.

Can a builder claim ITC on construction materials?

Builders constructing residential properties (5% or 1% GST) cannot claim ITC on construction inputs like cement, steel, and labour. This is a blocked credit under Section 17(5) of the CGST Act. Builders of commercial properties (18% GST) can claim full ITC.

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GST Rates · Construction & Real Estate

GST 2.0 Updated

GST Rates on Construction & Real Estate

GST rates on construction materials and real estate in India 2026. GST 2.0 reduced cement from 28% to 18% — a major cost saving for builders and homebuyers. Under-construction property at 5%, affordable housing at 1%.

At 5% GST

At 18% GST

GST 2.0 — Effective September 22, 2025

Cement reduced from 28% to 18% — saves ₹10,000 on every ₹1 lakh of cement. Particle boards reduced from 12% to 5%. Paint reduced from 28% to 18%.

Construction is one of the largest sectors in India and received significant GST relief under GST 2.0 (September 22, 2025). The most impactful change was the reduction of cement GST from 28% to 18% — cement forms 15–20% of total construction costs, so this 10 percentage point cut directly reduces building costs. For homebuyers, under-construction residential properties attract 5% GST (without ITC), while affordable housing (up to ₹45L stamp duty value) attracts just 1%. Completed properties with a completion certificate are fully exempt from GST.

All Construction & Real Estate — GST Rates and HSN Codes

Product / Service	HSN Code	GST Rate	Notes
Cement	2523	18% GST	GST 2.0 reduced cement GST from 28% to 18%.
Steel and Iron Products	7213	18% GST	Steel bars, rods, and structural steel attract 18% GST.
Bricks and Building Materials	6901	5% GST	Fly ash bricks: 5%. Clay bricks: 12%.
Paints and Varnishes	3208	18% GST	GST 2.0 reduced paint GST from 28% to 18%.
Under-Construction Property	9954	5% GST	Regular residential: 5% (no ITC). Affordable housing (up to ₹45L): 1% (no ITC). Completed properties: No GST.