Jewellery, tractor makers to gain from revised GST

Lower price hikes, coupled with market share gains from unorganised entities, would be key positives

The Goods and Services Tax (GST) Council's decision to lower rates on 66 items brought cheer to a host of companies in the jewellery, cinema and pharmaceutical sectors.

Take jewellery companies. While a lower than expected rate of three per cent on gold was a positive, the earlier decision was to have 18 per cent (from two-three per cent) on making jewellery from plain gold. This would have meant price increases by jewellery makers, which could have impacted the volume. Importantly, it would have further widened the price differential between jewellery sold by organised entities like Titan, PC Jeweller and TBZ