🏠 House Construction GST Savings — Old vs New (2025) Example
Let’s assume an average 1,500 sq ft G+1 house in Maharashtra with the following material purchase list. Below are the approximate old vs new GST impact and the total savings to the owner.
🧱 1. Cement
Detail
Old Rate
New Rate
Old Bill
New Bill
Savings
500 bags × ₹400 each = ₹2,00,000
28 %
18 %
₹2,56,000
₹2,36,000
₹20,000 saved
🪨 2. Granite / Marble / Stone Work
Old Rate
New Rate
Old Bill
New Bill
Savings
12 %
5 %
₹50,000
₹47,000
₹3,000 saved
🚽 3. Sanitaryware & CP Fittings
Old Rate
New Rate
Old Bill
New Bill
Savings
18 %
12 %
₹20,000
₹19,200
₹800 saved
🔌 4. Electrical Wire & Cables
Old Rate
New Rate
Old Bill
New Bill
Savings
18 %
12 %
₹25,000
₹23,800
₹1,200 saved
🪵 5. Plywood / Modular Kitchen / Furniture
Old Rate
New Rate
Old Bill
New Bill
Savings
18 %
12 %
₹1,00,000
₹94,400
₹5,600 saved
🪟 6. Glass Windows / Partition
Old Rate
New Rate
Old Bill
New Bill
Savings
18 %
12 %
₹70,000
₹65,800
₹4,200 saved
🧱 7. Tiles & Flooring
Old Rate
New Rate
Old Bill
New Bill
Savings
18 %
12 %
₹1,00,000
₹94,400
₹5,600 saved
🪟 8. Aluminium Windows / Doors
Old Rate
New Rate
Old Bill
New Bill
Savings
18 %
12 %
₹50,000
₹47,200
₹2,800 saved
🎨 9. Paints & Polish
Old Rate
New Rate
Old Bill
New Bill
Savings
28 %
18 %
₹60,000
₹54,000
₹6,000 saved
💰 Total Summary
Category
Old Bill
New Bill
Total Saving
All Above Items
₹6,75,000 (base) + old GST = ₹7,31,000
₹6,82,800
Total Savings = ₹48,200
✅ You Save Approx. ₹48,000 on Same Material Purchase That’s roughly 7 % saving on total material cost — without changing quality or brand!
🏠 A. GST on House Construction Services (Maharashtra)
Type of House / Project
Old GST Rate (Before 2019)
Revised GST Rate (After Mar 2019 – Current)
Input Tax Credit (ITC)
Remarks
Regular Residential (Non-Affordable)
12 %
5 %
❌ Not allowed
For under-construction houses. Builder/contractor cannot claim ITC.
Affordable Housing
8 %
1 %
❌ Not allowed
Carpet area ≤ 60 m² (metros) or ≤ 90 m² (non-metros) and value ≤ ₹45 L – qualifies as affordable.
Ready-to-Move / Completed House
Nil
Nil (Exempt)
NA
If occupancy certificate (OC) received, no GST applicable.
Independent House Construction (by Contractor)
18 %
18 % (unchanged)
✅ Allowed
When an individual hires a contractor to construct their personal bungalow or home — considered a “works contract service”.
🧱 B. GST on Construction Materials (in Maharashtra)
Material Type
Old Rate (Pre-2025)
New Rate (Post-2025 revision)
Notes / Remarks
Cement
28 %
18 %
Major rate reduction effective 2025.
Bricks (Fly Ash / Clay)
12 %
5 % – 12 %
5 % for fly ash; 12 % on other construction bricks/tiles from Sep 2025.
Sand / Gravel / Aggregates
5 %
5 %
No change.
Steel / Iron
18 %
18 %
Used for RCC, reinforcement, fabrication.
Granite / Marble / Natural Stone
12 %
5 %
Reduced in 2025 to boost housing.
Paints / Polish / Varnish
28 %
18 %
Reduction for finishing materials.
Tiles / Ceramic Flooring
18 %
12 %
Effective rate reduction 2025.
Sanitaryware / Plumbing Fittings
18 %
12 %
Same as tiles.
Electrical Fittings / Lights
18 %
12 %
Slight reduction for home fittings.
🧾 Quick Takeaways for Homeowners (Maharashtra)
✅ Buying a ready-to-move flat:No GST.
🏗️ Booking an under-construction flat: 1 % (affordable) or 5 % (regular).
🧰 Building your own bungalow with a contractor: 18 % on the service contract.
