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Consumer durable stocks like Voltas, Blue Star, PG Electroplast, and Amber Enterprises surged up to 10% on August 18, amid GST rate cut expectations.
Voltas, Blue Star, Amber, PG Electroplast among consumer durable stocks in focus on Monday.
Consumer Durable Stocks In Focus: Consumer durable stocks such as Voltas, Blue Star, PG Electroplast (PGEL), and Amber Enterprises jumped up to 10% on Monday, August 18, amid expectations of a possible cut in GST rates on the segment.
The Centre has proposed to “essentially move towards simple tax” with 2 slabs—”standard and merit”, with special rates applicable for only for select few items, the finance ministry said on Friday.
As per sources, the finance ministry has proposed to have two slab rates – 5% and 18% against the current four-slab structure. Majority of commodities of common man use will be under 5% (99 percent of items in 12% slab category will go to 5 percent) and 90 percent of items in 28 percent to be accommodated in 18% slab.
If everything goes as predicted, customer durable items like AC and Fridge will attract lower GST, leading to spur in demand according to analysts, as quoted by CNBC TV-18.
In a statement issued after Prime Minister Narendra Modi’s Independence day address where he announced that GST reforms which will lower tax burden substantially and benefit small industries will be implemented by Diwali, the ministry said that the central government has sent its proposal on GST rate rationalisation and reforms — specifically linked to structural reforms, rate rationalisation, and ease of living — to the Group of Ministers (GoM) constituted by the GST Council to examine this issue.
At present, in the electronics category, air conditioners and large-screen TVs (above 32 inches) are taxed at 28% GST, while items like smartphones, refrigerators, small-screen TVs, washing machines, and microwaves come under the 18% slab.
Shares of Blue Star, the manufacturer of home appliances, were trading up 7 per cent around 10:00 am to trade at Rs 1,908 apiece. Meanwhile, PGEL shares jumped 8 per cent to trade above Rs 525 apiece, against the previous day close at Rs 489.65 apiece.
Voltas shares were trading 6.32 per cent higher at Rs 1,354.90 apiece at the time of writing this report. Earlier, Voltas shares opened at Rs 1402 apiece in opening trade on Monday against the previous day close at Rs 1,274 apiece, reflecting a jump of 10 per cent.
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Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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