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Consumer and light electric companies hit fresh 52-week high after the Goods and Services Tax (GST) Council on Friday decided to slash rates on more than 175 items, reducing taxes on these from the existing 28 percent.
The council, which held a meeting in Guwahati, has decided to cut keep only 50 luxury and `sin’ goods like tobacco in the highest slab, paving the way for price cuts in a raft of commonly used goods from furniture to sanitary ware.
Daily use products such as shampoo, chocolates, beauty products and construction items such as marble and granite will cease to exit in the 28 percent slab, Bihar Deputy Chief Minister Sushil Modi said today at the sidelines of the 23rd GST Council meeting in Guwahati.
Hindustan Unilever from the consumer category closed 3 percent higher. It rose to a fresh 52-week high of 1297.95.
Crompton Greaves Consumer Electricals from the light electric category closed 4.1 percent higher at Rs 250. It rose to a fresh 52-week high of 253.70 earlier in the session.
Other stocks such as GlaxoSmithKline Pharma ended nearly 1 percent higher. Bajaj Electricals and Finolex Cables closed 6.1 percent and 1.7 percent higher respectively towards the close of the session.
The GST Council—the apex body for decision making headed by finance minister Arun Jaitley— today in its 23rd meeting in Guwahati will also discuss the proposal to do away with the distinction between air-conditioned (AC) and non-air conditioned restaurants (not under composition scheme) and tax them at 12 percent
The reduction in rates will be a significant step towards simplification of the GST to support the trader community ahead of the election in Gujarat that will be held in two phases—December 4 and 11.
Small and Medium-Sized Enterprises (MSMEs) have been hit by the implementation of the new indirect tax system and crucial steps will be taken to mitigate their challenges.
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