GST 2.0 Guide for Homebuyers: Owning a house is still one of the biggest aspirations for Indians, across all income groups and generations. While millennials often prefer stocks and mutual funds for faster returns, surveys show that 70% of millennials and 46% of Gen-X investors are saving their gains to eventually purchase a home.
If you too are planning to buy your dream home in 2025, you’re probably asking: How will the new GST 2.0 impact my costs? Let’s break it down step by step.
GST Comparison Table for Homebuyers (Before vs After GST 2.0)
| Item/Category | GST Before | GST After (2025) | Impact on Buyers |
|---|---|---|---|
| Cement | 12% | 18% | Big cost relief, reduces construction expenses by 3–5% |
| Marble/Granite Blocks | 12% | 5% | Cheaper flooring and finishing |
| Bamboo Flooring | 12% | 5% | More affordable eco-friendly flooring |
| Bricks (job work) | 12% | 5% | Slightly lowers wall construction cost |
| Sand lime bricks / Stone | 12% | 5% | Reduced interior finishing expenses |
| Kitchenware & Tableware (iron, wood, steel, porcelain, etc.) | 12% | 5% | Lower setup cost for new households |
| Household Wooden Articles (hangers, bobbins, reels, etc.) | 12% | 5% | Affordable interiors & utility items |
| ACs, Dishwashers, TVs (LCD/LED) | 28% | 18% | Electronics get cheaper |
| Affordable Housing (under ₹45 lakh) | 8% (effective) | 1% | Huge benefit for first-time buyers |
| Non-affordable Housing | 12% (effective) | 5% | More clarity, slight relief |
| Society Maintenance (above ₹7,500/month) | 18% | 18% (unchanged) | Still applies if criteria met |
How GST Works for Homebuyers
- Under-construction property: You pay GST at a fixed rate on the full property price.
- Construction materials: You don’t pay this directly, but builders add it to project costs, which ultimately affect your purchase price.
- Home setup costs: From cement to kitchenware, GST applies when you buy items to furnish and shift into your new home.
So, while you may not notice every tax line, GST directly and indirectly shapes the final cost of your home.
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GST 2.0: What’s Changed for Homebuyers
GST 2.0 has simplified India’s tax structure. Instead of multiple confusing slabs, most housing-related items now fall under 5% or 18%, with only luxury/sin goods taxed at 40%.
1. GST on Under-Construction Property
- Affordable housing: 1% GST
- Homes under ₹45 lakh with carpet area up to 60 sqm (metros) or 90 sqm (non-metros)
2. Other housing: 5% GST
- Applies to base price + add-ons like parking, clubhouse, and maintenance charges before completion
Also Read: How to Get a Loan from Google Pay: Step-by-Step Guide to Borrow Up to ₹10 Lakh
GST on Housing Society Maintenance
If you move into a society where: The society’s turnover is above ₹20 lakh, and Your monthly maintenance exceeds ₹7,500. You must pay 18% GST on the entire amount.
GST 2.0 Guide for Homebuyers by Expert Insight
According to Anuj Puri, Chairman, Anarock Group: “The simplified GST 2.0 structure reduces confusion by trimming down to two main slabs—5% and 18%. This pricing clarity will build confidence among first-time buyers and encourage many who were undecided to finally purchase their homes.”
Key Takeaways for Homebuyers
- Affordable homes attract just 1% GST, making them highly attractive.
- Construction materials are cheaper—cement alone dropped by 10%.
- Household items and interiors are taxed at 5%, reducing shifting costs.
- Appliances like ACs and TVs now fall under 18%, instead of 28%.
- Maintenance charges above ₹7,500/month still attract 18%.
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The revised GST 2.0 brings more transparency and cost relief for homebuyers in 2025. While real estate prices will still depend on location, demand, and builder pricing, the reduction in GST on cement, flooring materials, and household goods will ease the burden for new buyers.
For those sitting on the fence, this could be the perfect time to finally make the move towards owning a dream home.