The GST Council on Saturday cut tax rates on 88 items, including footwear, refrigerator, washing machine and small screen TV.
New Delhi: Shares of footwear, paint makers, consumer durables and FMCG companies surged up to 10 per cent on Monday after the GST Council reduced tax rates on a number of products.
The GST Council on Saturday cut tax rates on 88 items, including footwear, refrigerator, washing machine and small screen TV. Among footwear stocks, Liberty Shoes soared 10.35 per cent, Bata India 6.96 per cent, Khadim India 6.54 per cent, Mirza International 4.40 per cent and Relaxo Footwears 2.77 per cent on BSE.
Footwear costing up to Rs 1,000 will now attract 5 per cent GST. So far, footwear up to Rs 500 attracted 5 per cent GST, and those having retail sale price of over Rs 500 attracted 18 per cent rate.
"We see paint companies, footwear companies, hotels to be some of the key beneficiaries of the GST Council's decisions on rate-rationalisation," JM Financial Institutional Securities said in a report. Refrigerator, washing machine, small screen TV, storage water heaters, paints and varnishes, will henceforth attract 18 per cent GST as against 28 per cent earlier.
The scrip of Shalimar Paints rose 4.09 per cent, Kansai Nerolac Paints 2.71 per cent, Asian Paints 2.63 per cent, Akzo Nobel India 1.75 per cent, Berger Paints 1.63 per cent and Kajaria Ceramics 0.38 per cent on BSE.
"Consumption oriented sector inched higher in expectation of improvement in margin and volume growth on account of lower GST rates," said Vinod Nair, Head of Research, Geojit Financial Services.
The highest tax bracket of 28 per cent has been rationalised further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium-ion batteries, being lowered to 18 per cent. The revised tax rates will come into effect from July 27.
Shares of Havells India surged 9.13 per cent, Bajaj Electricals 5.95 per cent, V-Guard Industries 5.33 per cent, Butterfly Gandhimathi Appliances 5 per cent, Whirlpool of India 3.45 per cent and IFB Industries 2.76 per cent. ITC rose 3.80 per cent and Hindustan Unilever 1.84 per cent.