A Big Boost for Homebuyers and Builders Alike
If you’ve been thinking about building a home or starting a new project in Mysore, there’s great news. The latest GST 2.0 reforms, effective from September 22, 2025, have brought down the tax rates on several key construction materials.
This change — part of a broader simplification of India’s Goods and Services Tax — aims to make home construction more affordable, transparent, and growth-friendly. For homebuyers and developers alike, the impact is direct and positive: overall construction costs are expected to reduce by nearly 3–5%.
The New GST Structure: Simpler and Smarter
Earlier, construction materials were taxed under multiple slabs like 5%, 12%, 18%, and 28%. Under GST 2.0, the government has streamlined this into two primary slabs — 5% and 18%, with only a few luxury items remaining higher.
For the construction industry, this is a major relief. Let’s look at what has changed:
| Material | Old GST Rate | New GST Rate (from Sept 22, 2025) | Impact |
|---|---|---|---|
| Cement | 28% | 18% | Reduces cost per bag by ₹25–₹30, lowering total project cost by 4–5%. |
| Marble & Granite (Blocks) | 12% | 5% | Flooring and interiors become more affordable. |
| Sand-lime Bricks | 12% | 5% | Lowers the cost of masonry work and basic construction. |
| Fly Ash Bricks | 12% | 5% | Promotes sustainable and economical building. |
| Paints & Tiles | 28% | 18% | Makes finishing work more affordable for new homes. |
| PVC Pipes & Fittings | Varied | 5% | Lowers plumbing and utility installation costs. |
What This Means for Homebuyers
For anyone building a new home, this reform translates into real savings. Materials like cement, tiles, and pipes make up a significant portion of total project costs — so even a small percentage reduction brings meaningful value.
Here’s how you benefit:
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Lower overall construction cost – The drop in GST on materials brings total project expenses down by 3–5%.
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Affordable housing gets a boost – Buyers in the mid-range housing segment will see better value for money.
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Ready-to-move homes remain GST-free – Completed properties with occupancy certificates are still exempt from GST.
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Transparency improves – With a simpler two-slab system, there’s less confusion about tax calculations.
For Mysore’s growing housing market, this change could not have come at a better time. The city’s demand for premium yet affordable homes continues to rise, and lower construction costs will encourage both individual homebuilders and developers to start new projects confidently.
Impact on Builders and Developers
From a builder’s standpoint, GST 2.0 is a win in many ways:
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Reduced input costs: With cement and other materials becoming cheaper, overall project costs come down significantly.
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Better project margins: Lower raw material prices improve financial viability and allow more flexibility in pricing.
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Simplified compliance: A two-rate structure means less confusion in tax filings and easier project accounting.
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Increased buyer confidence: Lower construction costs can translate into more enquiries, bookings, and faster project turnovers.
However, the Input Tax Credit (ITC) restriction remains — meaning residential projects still can’t claim ITC, while commercial constructions continue to be eligible.
What It Means for Self-Builders
If you’re constructing your own home and purchasing materials directly, this change benefits you instantly. You’ll pay the new, reduced GST rates when buying cement, bricks, pipes, and tiles — saving thousands without depending on a builder to pass on the benefit.
Pro Tip: Avoid bundled contracts that include both labor and materials, as those are still taxed at 18%. Buy materials separately and hire labor under a pure labor contract to maximize savings.
Timing of the Benefits
The full benefits of GST 2.0 will be visible mainly in new projects launched after September 2025. Ongoing projects might take a few months to reflect the cost reduction, as most builders will first exhaust material stocks purchased at older rates.
So, if you’re planning to start your home construction soon, this is the right time. New estimates and quotations prepared after this date will already factor in the lower material costs.
Heritage Builders’ Viewpoint
At Heritage Builders, transparency and trust have always been our foundation. The new GST structure only strengthens our philosophy of “Plan right. Build smart.”
Here’s how we’re ensuring our clients benefit from these reforms:
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All new estimates are being revised to include updated GST rates.
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Our procurement systems are being updated to source materials at reduced rates.
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Savings are being passed on directly to our clients through transparent quotations.
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For upcoming projects, clients can expect up to 5% reduction in total cost estimates without compromising on quality or finish.
We believe every Mysorean deserves a home built with honesty, precision, and fairness — and these reforms make that journey easier.
Quick Tips for Homebuyers
✅ Ask your builder if your quotation reflects the new GST rates (as of Sept 22, 2025).
✅ For self-builders, ensure your invoices mention the revised GST slab on materials.
✅ Compare costs across vendors — some may still be clearing old stock at higher rates.
✅ Prioritize builders who maintain transparent billing practices.
Final Thoughts
The GST 2.0 reform is a major step toward simplifying India’s tax system and making homebuilding more accessible. For Mysore’s homebuyers and developers, it brings both relief and opportunity.
With lower material costs, simplified taxes, and more transparency, building your dream home just became 5% easier.
At Heritage Builders, we’re already implementing these changes to ensure you get the best value, clarity, and confidence in every project.
📞 Get in Touch
Plan right. Build smart. Avoid surprises with Heritage Builders.
📞 +91 88618 22228 | +91 73492 61566
🌐 heritagebuilders.co.in