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MOSL: GST-Rates slashed-Making GST more palatable

​GST: Rates slashed; Making GST more palatable

The GST Council, in its 23rd meeting, has made significant changes to the tax framework, pruning the tax rates and easing the compliance burden for SMEs. The reduction in taxes is estimated to have an impact on government revenue to the tune of ~INR200b. We believe the reduction in duties will benefit sectors like consumer, light electrical and home building. This, in our view, should benefit companies like HUL, GSK Consumer, Gillette, Nestle, Havells, Crompton Consumer, Finolex Cables, Kajaria Ceramics, Somany Ceramics, Century Ply, Bata, VIp Industries, Interglobe Aviation and Jet Airways among others.

Major overhaul in GST rates

  • With monthly tax collections in excess of INR900b during the initial months of GST rollout, the government believes that the macro revenue picture is not looking bad.
  • In the GST Council meeting held on 10th November 2018, the rates for various goods have been pruned, especially for those in the highest tax slab of 28%. These changes, however, will be applicable from 15th November 2017.
  • Of the 228 goods that are currently under the highest tax slab, 178 will see a reduction in taxation. These primarily include mass consumption products, leaving only 50 luxury and sin/demerit goods like air conditioners, automobiles paints, cement, washing machines and tobacco, among others, in the 28% slab.
  • Furthermore, taxation on selected items in few other tax slabs (18%, 12% and 5%) has been lowered. The GST rate on all restaurants (except in hotels with tariff exceeding INR7,500/night) has been lowered to 5%, with no input tax credit. 


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Motilal Oswal
Motilal Oswal

​Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance. 

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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