GST 2.0: House and Luxury Car Prices to Drop
The revised GST 2.0 tax structure is set to bring relief to homebuyers and luxury car enthusiasts, as major tax cuts have been announced on cement, construction materials, and high-end vehicles.
Housing Sector Boost
Under the old GST system, cement was taxed at 28%, but in the revised rates, it has been slashed to 18%. Similarly, timber, marble, granite, and other construction materials earlier taxed at 12% have now been brought down to 5%.
With reduced costs for core building materials, experts predict a significant fall in housing prices, benefiting both builders and buyers.
Luxury Cars Become Cheaper
There was initial speculation that the price of luxury cars would rise as GST has been fixed at 40%. However, industry experts clarified that this change is actually beneficial.
Earlier, luxury cars such as Mercedes were taxed at 28% GST plus a 22% cess, totaling 50%. For example, a car priced at ₹1 crore attracted an additional ₹50 lakh in tax.
With GST 2.0, only 40% GST is applicable and the cess has been removed. Now, the same car priced at ₹1 crore will incur just ₹40 lakh tax, effectively reducing the price of luxury cars by around 10%.
Conclusion
The GST 2.0 reform is expected to make homes more affordable and reduce the cost of luxury cars, marking a significant positive shift for both the real estate and automobile industries.
