Quote on GST 2.0 and Its Impact on the Real Estate Sector by Aniruddha Mehta, Chairman & Managing Director, Umiya Buildcon Ltd
Below the Quote on GST 2.0 and Its Impact on the Real Estate Sector by Aniruddha Mehta, Chairman & Managing Director, Umiya Buildcon Ltd
"The rationalisation of GST under the proposed reforms marks a landmark moment for the real estate and construction industry. Simplifying tax slabs on key inputs like cement, steel, and paints will reduce pricing inefficiencies, improve procurement processes, and ease cash flow challenges — all of which are crucial for sustainable project execution. Even a modest reduction in input costs can significantly enhance project viability and timelines, particularly in affordable and mid-income housing where pricing sensitivity is high.
Beyond cost savings, GST 2.0 has the potential to catalyse growth and job creation across the broader ecosystem. As one of the country’s largest employment generators, real estate stands to benefit from improved liquidity and reinvestment opportunities, leading to more jobs in construction, allied industries, and services.
Moreover, a simplified and transparent tax regime instills greater confidence among both homebuyers and long-term investors. It can drive capital inflows, support sustainable building practices, and ultimately contribute to India’s housing and infrastructure goals. That said, clarity on transitional provisions and tax credit flow will be essential to ensure a smooth shift and protect near-term working capital cycles."
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