FMCG stocks happy with GST rates

The GST finalization of rates might not have given the overall market a big push but it surely has worked well for consumer goods shares, which are on a roll today.  ITC is the top gainer, up currently over 4.5% at Rs.251 levels, followed by Colgate Palmolive – up 3.5% at Rs.385. Hindustan Unilever is up 2% at Rs.855. The BSE FMCG index is up in the green, up over 2%.

The Center and the States have agreed on a four-slab tax structure. This is 5%, 12%, 18% and 28%. There will also be a cess on luxury and sin goods like tobacco, luxury cars and aerated drinks – they will be charged a cess over and above 28% tax. 50% of the items in the retail inflation basket are being kept out of the GST purview. Mainly food items will have zero tax.