BENEFITS OF GST(GOODS AND SERVICES TAX) TO VARIOUS SECTOR OR THE GAINERS OF GST
1) Automobiles(Car and bike industries)
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| Inside maruti Suzuki factory |
The auto sector is likely to come out as a champion from GST bill implementation, provided the charge is under the total tax occurrence for the sector (>28%). GST is expected to guide to lesser cost for the end user and thus this increase the demand. The companies which get the maximum benefits are Maruti Suzuki and Mahindra.
2) Multiplexes(Movie Theaters)
Multiplex companies pay about 22% of the income per .No wonder, GST is likely to reduce the tax load and improve the earnings before interest, taxes, depreciation and amortization . Stocks of PVR Ltd and Inox Leisure Ltd have increased 51% and 31%, respectively, so far in Financial Year 2017.
3) Logistics
Supply chain organization
is expected to get a enhance and shipment time will decrease. Further,
interstate trade barriers would trim down and finally result in better
interstate trade. Consolidation of warehousing amenities is estimated. Stocks
that may benefit include Container Corporation of India and Transport Corporation of India Ltd.
4) Cement
The anticipated 17.98% GST rate is very less than what cement companies are giving now, and analysts anticipate cement makers to pass on the benefits to consumers as demand continues to remain weak. Whether this alone will help renew demand is another matter altogether.
5) Retail
The chance to set off input tax credit on rent is expected to aid margin expansion. But retail companies are facing other troubles. Shoppers Stop stock has underperformed the benchmark Sensex this year, as fundamental demand leftovers weak and like-to-like sales growth has been monotonous.
