GST Council Delivers Festive Relief India’s Goods and Services Tax Council has overhauled the indirect tax regime to simplify consumption and boost economic activity Slimmed to two major slabs: 5% and 18%, eliminating the 12% and 28% brackets. Introduced a new 40% ‘sin & luxury’ slab for items like tobacco and fast food. Electric Vehicles (EVs) retain a supportive 5% rate, reinforcing India’s green mobility push. The reforms pave the way for easier compliance and aim to empower consumers and small businesses. These changes will take effect from September 22, 2025. What It Means for Equity Markets With the tax overhaul aimed at triggering festive season demand, certain sectors are poised to benefit as GST reductions translate into lower retail prices and affordability: Autos (TVS, Hero MotoCorp, Maruti Suzuki)- Tax cuts could boost volumes and earnings by 2–8%. Consumer Goods (HUL, Godrej) & Durables (Voltas, Blue Star, Samsung)- Lower GST lifts demand for staples and appliances. Cement & Construction- Cut from 28% to 18% eases input costs, aiding infra growth.

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