GST Impact on stocks

The Goods and Services Tax Bill or GST Bill, officially known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, proposes a national Value added Tax to be implemented in India.

 

1) BANKS – Current service tax 15% know after GST 18% Negative.

2) CONSUMER STAPLES current tax rate 22% know after GST it’s 18% .
Positive for – Asian paints,Dabur,HUL,EMAMI
NEGATIVE for ITC & UNITED BEVERIES.

3) CONSUMER DISCRETIONARY current 15% after GST 18%
NEGATIVE for Jubilant Food works,Coffe Day ,& Restaurant Businesses.

4)MEDIA – current Tax 15% service tax and 7% entertainment Tax by State’s know After GST it will be 18%
POSITIVE for DISH TV, VIDEOCON D2H, BIG TV,

5) TELECOM current Tax 15% After GST 18% may see marginal dip in consumption as tax rise from 15% to 18%

6)AUTO INDUSTRIES current Tax 27% after GST it will be 18% .
POSITIVE for M&M, MARUTI,BAJAJ AUTO , EICHER MOTORS,ASHOK LEYLAND .

7)METALS – current TAX 18% after GST 18% no major impact

8) CEMENT – current Tax 27% altogether after GST it will be 18%
POSITIVE for Ultra tech cement,shree cement,ambuja cement etc.

9) PHARMA – current Tax 15% after GST it will be 18% .
NEGATIVE for Pharma companies.

10) REAL ESTATE – 15% to 16% Stamp duty so no major impact on REAL ESTATE companies.

11) LOGISTICS – majorly benefits to logistics sector no impact of GST
POSITIVE for – Container Corp, GATI etc…

 

Sent by Ruchir, Reader of the Blog