India, Sept. 5 -- The Goods and Services Tax (GST) council's decision to reduce the tax rate on cement from 28% to 18% on Tuesday marks one of the most significant reforms for the construction ecosystem in recent years. Cement, which makes up nearly a quarter of overall project costs, has long been a source of pressure for developers working with tight margins. The cut, effective September 22, is expected to ease input costs, improve project viability, and offer relief to homebuyers just ahead of the festive season, according to developers.

Alongside cement, other construction materials such as sand, lime, stone fittings, tiles, and bricks will also see a reduced GST rate of 5%, down from 12%. Developers said this rationalisation will no...