GST Rate Cut - Consumer Goods And Other Stocks That Could Benefit

Motilal Oswal has listed some of the stocks that will benefit from Friday's big GST rate cut decision, which will be applicable from November 15.

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GST Rate Cut - Consumer Goods And Other Stocks That Could Benefit

The GST Council also eased compliance burden on SMEs.

The GST Council in its 23rd meeting on Friday made big changes to the tax framework, pruning the tax rates on over 200 items. The GST Council also eased the compliance burden for SMEs. The reduction in taxes is estimated to have an impact on government revenue to the tune of Rs 20,000 crore. "We believe the reduction in duties will benefit sectors like consumer, light electrical and home building. This, in our view, should benefit companies like HUL, GSK Consumer, Gillette, Nestle, Havells, Crompton Consumer, Finolex Cables, Kajaria Ceramics, Somany Ceramics, Century Ply, Vip Industries, Interglobe Aviation and Jet Airways among others," brokerage Motilal Oswal  said in a note. 

The Sensex was muted on Monday, down nearly 100 points. Some analysts said that the GST rate cut was already factored in. The brokerage listed some of the stocks that will benefit from Friday's big GST rate cut decision, which will be applicable from November 15. 


Beneficiaries of rate reduction from 28% to 18%

Consumer Products


Shampoo, deodorants & other toiletries - HUL, ITC
Detergents - HUL, Jyothy Labs
Hair cream & dyes - Godrej Consumers
Liquid or cream for skin washing - Colgate
Instant coffee - Nestle, HUL
Chocolates, chewing gums, malt extract, food preparation of flour - GSK Consumer, ITC, HUL
Shaving & razor blades - Gillette, HUL
Watches, goggles - Titan
Luggage - VIP Industries, Safari

Light electricals

Fans, pumps & lamps - Crompton Consumer, Havells, Orient Electric, Bajaj Electricals
Switches - Havells
Cables & wires - Havells, Finolex Cables, V Guard
Primary cell & batteries - Eveready Industries

Capital goods

Fork lifts, lifting and handling equipment, bulldozers, excavators, earth moving machinery, escalators - Larsen & Tubro, BEML

Home building

Marble and granite tiles & ceramic items - Kajaria Ceramics, Somany Ceramics, Asian Granito
Wooden furniture - including plywood, veneered panels and laminated wood - Century Ply, Greenply
Mattress, bedding articles and similar furnishing items - Bombay Dyeing
Sanitary wares -  Cera Sanitaryware Limited

Others

Rubber tubes and articles of rubber - MRF, Ceat, Apollo Tyres, JK Tyres

Beneficiaries of reduction of tax rates in other slabs
 

18% slab to 12% slab 


Condensed milk - Nestle, Parag Milk Foods
Refined sugar and sugar cubes - EID Parry, Balrampur Chini, Shree Renuka 
Pasta & diabetic food - Nestle, ITC 

Other - 18% slab to 12% Slab 

Spectacles frames - Titan 


Miscellaneous

28% slab to 5% slab 


Aircraft engines, aircraft tyres & seats - InterGlobe Aviation, Jet Airways, SpiceJet

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