Cyrus Mody, CEO and Founder of Viceroy Properties:
The GST reforms demonstrate a desired shift towards a more transparent and simplified path to taxation. For luxury real estate, the reduction in GST on cement from 28% to 18% and on items like marble and granite from 12% to 5% means that overall construction costs will reduce by nearly 5%, enhancing project efficiencies. At Viceroy Properties, we believe that these reforms serve as an opportunity to elevate the standards of luxury living in India—whether that be using sustainable materials that are locally sourced or delivering high quality residences that meet global standards. Beyond that, the reforms represent long-term value for discerning homebuyers and investors at a time when the luxury housing demand in India has grown over 40% in the last two years. The clarity gained by reducing complexity and developing confidence amongst investors, will have many more people consider Indian luxury real estate for themselves and from an investment perspective as there really has never been a better time to explore luxury real estate for discerning homebuyers and investors.
Mr. Shobhit Singh, MD & CEO, Stone Sapphire India Pvt. Ltd
“The revised GST slab will certainly influence stationery pricing, bulk buying behavior, and compliance costs. While customers may expect additional discounts under the perception of reduced tax, the reality is that compliance expenses remain unchanged, and margins are unlikely to expand. In fact, we anticipate tougher negotiations as buyers push for more price cuts, even though the tax component was never retained by manufacturers or retailers—it was always submitted to the government. That said, a lower GST rate does make stationery more affordable, which could stimulate demand and encourage higher consumption. Over time, this accessibility may balance out margin pressures, creating opportunities for the sector to grow while ensuring consumers benefit from fairer pricing.”
Mr. Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd. (RSBL)The GST Council’s announcement on maintaining 3 percent GST on gold and silver and 5 percent on jewellery-making charges has brought stability but comes with mixed results. For jewellers, it doesn’t change how they do business as there is no relief on margins, despite their hopes of getting a rate cut, in order to stimulate demand, to the end-consumer. Higher costs may still have a detrimental impact on affordability, particularly during the festive season. For investors, unchanged GST provides clarity to the buyer, and also does not create havoc in the market, however, entry costs remain slightly high compared to global benchmarks. On the one hand, the decision should defend the government’s revenue stream, but both jewellers and buyers may feel that their growth opportunities remain hindered.
The cut in GST from 18% to 5% on tractor tires and tubes, and 28% to 18% on new pneumatic tires is a historic reform that will directly benefit the farmers and off-highway tire customers in India. As makers of Alliance and Primex Tires, we see this GST reduction as an opportunity to assist our consumers in choosing the right application-specific mobility solutions at lower operating costs.Mr. Haresh Karamchandani, MD & Group CEO, HyFun Foods
“The decision to reduce GST on frozen products to 5% is a very positive and timely move. This step will not only increase consumption frequency given the affordability implications, but also create a positive ripple effect on the overall economy by stimulating demand. At HyFun Foods, we see this as an encouraging development for us and the agricultural value chain, as increase in consumption will support our farmers and consumers alike. The larger industry will also benefit – the proposed simplifications in the GST framework are a welcome move that will streamline compliance and make operations more efficient for all.”