Title: Colgate-Palmolive jumps 8% after GST changes

Colgate-Palmolive (India) shares surged 7.7% to ₹1,868.90 on October 9 after the GST Council recommended changes to input tax credit (ITC) provisions. The proposals could ease tax-related costs and working capital pressure for businesses, prompting a sharp recovery in the stock after two consecutive sessions of decline. The GST Council’s recommendations, announced after its October 8 meeting, include allowing ITC on certain expenses such as employee health and life insurance, telecommunications towers and pipelines located outside factory premises. The Council also recommended ITC on free samples and goods written off after expiry where destruction is required by law. These changes are intended to reduce cascading taxes and improve the utilisation of eligible tax credits. The stock later pared some gains due to profit booking at higher levels and was trading at ₹1,827.70, up 5.3%, around 2 pm. However, the actual benefit to Colgate-Palmolive will depend on how the revised provisions apply to its business and whether they lead to meaningful cost savings. The company has also benefited from the earlier reduction in GST on oral care products from 18% to 5%. Going forward, investors will watch whether the latest ITC recommendations improve working capital efficiency and support profitability. The proposed changes have triggered a positive market reaction, but their impact on the company’s earnings remains to be assessed.