GST rate reduced to 5% on Marble and Travertine Blocks, Granite Blocks: GST Council Meet
One of the primary goals of this GST reduction is to lower the cost of real estate, especially homes
The Goods and Services Tax (GST) Council's 56th meeting, which was presided over by Union Finance Minister Nirmala Sitharaman and took place on September 3, 2025, at Sushma Swaraj Bhavan in New Delhi, has suggested lowering the GST rate on granite and marble blocks, which was previously set at 12%.
The goal of this modification is to simplify the tax system, rationalize GST rates, and support important economic sectors. The government hopes to minimize overall construction costs, which can eventually help developers and homebuyers, by reducing the tax burden on necessary building materials.
The action is meant to boost the infrastructure and real estate industries by lowering the cost of development and assisting in project cost stabilization. The rate cut creates a 40% rate for demerit items and is in line with the GST Council's objective of implementing a more straightforward, two-tier tax structure of 5% and 18%.
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The Council has proposed significant rate reduction actions that should directly benefit millions of stakeholders whose livelihoods depend on the fishing and aquaculture industries, reduce operating costs, and increase exports.
The 5% GST reduction on marble, travertine, and granite blocks is expected to have a significant positive impact on a variety of companies. The most evident outcome for developers is a reduction in building expenses. Granite, marble, and travertine are high-end materials that are utilized for finishing, cladding, and flooring in both residential and commercial settings. If the GST is lowered from 12% to 5%, the cost of buying these materials will decrease.
One of the primary goals of this GST reduction is to lower the cost of real estate, especially homes. Although the whole impact on home costs will depend on whether developers pass on the savings, industry analysts expect that it may help cut the final cost for purchasers, particularly in the mid-income and premium categories where these materials are more frequently deployed.
The cut is a move in the right direction for the marble, granite, and travertine industries. Lower prices may increase consumer demand for certain products, increasing output and sales for manufacturers and suppliers. The 5% discount has made domestically produced blocks more competitive with imported alternatives and other flooring materials.
The GST Council's broader initiative to simplify the tax code includes this change. Businesses would find it easier to comply as the government streamlines the GST system and reduces the number of tax slabs by moving some materials from the 12% slab to the 5% slab.
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