Govt fixes GST rates on all items: Impact on sectors and stocks

The GST Council will meet again on June 11 and review the rates based on industry representations

Finance Minister Arun Jaitley over the weekend announced GST rates for a number of commonly-used items, including footwear, apparels and gold, following the 15th meeting of the GST Council. We have analysed the impact on some of the major commodities.

Gold, gold jewellery, silver and diamond will be taxed at a GST rate of 3% against the current effective rate (excise plus VAT) of 2%. A higher rate would have enhanced tax evasion and smuggling. While this would make buying jewellery costlier, the move to levy higher tax would benefit the larger players in the organised sector.

Retailers believe that consumer durables