Prime Minister Narendar Modi, in his Independence Day speech, announced that the Group of Ministers (GoM) on Rate Rationalisation – including ministers from Kerala, Uttar Pradesh, Rajasthan, West Bengal, Bihar, and Karnataka – is scheduled to meet next week to deliberate on the proposed GST reforms.
On Friday, Prime Minister Modi emphasized the significance of GST reforms, stating that they would benefit the common man, farmers, the middle class, and MSMEs. The Finance Ministry also expressed confidence that the GST Council would approve the proposal.
As part of its goal to create an ‘Atmanirbhar Bharat’, the Centre is advancing GST reforms focused on three key pillars: structural reforms, rationalisation of rates, and improving ease of living.
“The upcoming GST meeting on September 9 is expected to bring significant reforms that could benefit various sectors. The government proposes eliminating the 12% and 28% tax brackets, retaining only the 5% and 18% slabs, and introducing a new 40% “sin tax” for select items like tobacco and gutka. This restructuring could lead to rate reductions for consumer goods, making items like air conditioners, white goods, toothpaste, soap, and shampoo more affordable,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.
Stocks to buy
According to market experts, the market is likely to cheer PM Modi’s announcement of GST reforms in his Independence Day speech.
” Bulls are expected to cheer PM Modi’s announcement of GST reforms in his Independence Day speech. PM Modi has hinted at next-generation GST reforms by Diwali 2025, which is expected to boost consumption in India because GST is a consumption-oriented tax levied nationwide,” said Anuj Gupta, Director at Ya Wealth.
According to Seema Srivastava of SMC Global Securities, these stocks may benefit from these reforms –
Tata Motors share price closed in green at ₹664 apiece on Thursday, August 14.
DLF Limited
DLF Limited share price closed in red at ₹750.35 per share on Aug 14.
Godrej Properties share price was down 1.15 per cent to close at ₹1,937.
Dixon Technologies
Dixon Technologies share price was up 1.49 per cent to close at ₹16,190.
Sun Pharma
Sun Pharma shares closed in red at ₹1,638.60.
UPL share price closed in red at ₹682.85.
Bharat Electronics shares were down 1 per cent at ₹384.70 apiece.
TVS Motor
TVS Motor share price closed in red at ₹3,016 apiece.
Coromendal International
Coromendal International share price rallied 4.40 per cent to close at ₹2,357.
Godrej Agrovet share price fell over 3.44 per cent to ₹750 apiece.