The GST rate cut announced at the 28th GST Council Meeting reflected in the stock market today with BSE Sensex reaching an all-time high. Among the top gainers in the market, various blue-chip companies like ITC, Maruti, ICICI Bank, etc., contributed to the Sensex index. NSE Nifty also witnessed significant gains in the market by reaching a five and a half month high at the end of today’s (Monday) trading.
In addition to the GST rate cut, other factors such as optimism over fresh fund inflows and the upcoming corporate earnings results for the first quarter also contributed to the growth. Sensex increased more than 100 points in the morning session despite opening flat due to concerns of negative Asian cues. Other top companies such as Asian Paints, Hero Motors, Bharti Airtel, Adani Ports, Reliance Industries, etc., also contributed to the index.
Sensex finished the day at 36,718.60 points, which is about 222 points higher than Friday’s closing price. During the intraday trade, Sensex reached its all-time high of 36,749.69 points. Nifty 50 index, on the other hand, increased to 11,080 points owing to significant increases in FMCG stocks.
The GST Council that met on Saturday lowered the rates of about 88 items including electrical appliances, certain consumer goods, handicraft items, etc. Following this recent cut, there are only about 35 items left in the 28% slab. Some of these items include automobile equipment, video recorders, tobacco, pan masala, etc. Rates of various appliances like refrigerators, washing machines, etc., have been reduced from 28% to 18%.
Since the introduction of GST last year, rate cuts have been implemented for over 191 items. Certain items like sanitary napkins, wood deities, marbles, etc., are now exempt from GST. In addition to the tax rate cut, the Council also took the decision to allow taxpayers whose turnovers are below Rs.5 crore to file their tax returns on a quarterly basis.
Source: Financial Express