GST Effect: Constructing a house will now be cheaper with reduced cement prices

UltraTech has reduced its cement prices by upto 3 percent  on account of GST. This is seen as a positive effect to the real estate industry which is grappling with low after demonetisation.

Already, cement prices have been taxed at 28% as against 31-32% in the previous regime. This will reduce the cement prices and UltraTech is being the first to join the bandwagon.UltraTech cement in its statement has said that we have decided to pass on the benefit to the end consumers. 

Builders have already dissuaded the buyers on apprehensions of GST and received full payments in certain cases however the Govt has clearly emphasized that with Input credit the overall incidence will be low now. It is upto the builder how he responds to the ultimate price considering the input credit.

Builders have given mixed reaction to the input credit availment. Certain builders have said they will be passing on the benefit while some have refused for the same.

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