GST Overhaul: 40+ Stocks That Could Gain Big From Rate Cuts

 GST Revamp: Over 40 Stocks Poised to Benefit, Say Experts – Check the Full List

 

Prime Minister Narendra Modi’s Independence Day announcement that India will overhaul GST by Diwali has set Dalal Street buzzing. Analysts are calling it the biggest indirect tax reform since GST was first rolled out in 2017.

 

The government plans to simplify the current four-tier GST system into just two key rates – 5% and 18% (excluding sin goods). This means:

 

Almost all items taxed at 12% will move down to 5%.

 

A large share of goods currently at 28% will shift to 18%.

 

Brokerages estimate this could cut retail prices by 4–5%, giving households relief and driving higher consumption. The Finance Ministry expects a revenue impact of about ₹50,000 crore, which it considers manageable.

 

Sectors and Stocks in Focus

 

Automobiles: Two-wheelers, small cars, and commercial vehicles could see a major boost as GST on them drops from 28% to 18%. Winners include Bajaj Auto, Hero MotoCorp, TVS Motor, and Eicher Motors.

 

Cement: A cut from 28% to 18% could lower prices by nearly 8%. Analysts expect a ₹20,000–25,000 crore revenue hit for the government, but a big sentiment lift for the sector.

 

Consumer Durables: Products like air conditioners and large appliances will get cheaper, giving companies like Voltas, Blue Star, Havells, and Dixon Technologies a boost.

 

Banks & Financials: With lower taxes encouraging spending, credit demand may rise. ICICI Bank, HDFC Bank, and IDFC First Bank are expected to benefit.

 

Brokerages like Motilal Oswal, Jefferies, and Emkay Global believe these changes could also help bring down inflation by 0.5–0.6 percentage points annually, provided the government manages the revenue gap well.

 

The Big Picture

 

GST Rate Cuts: Over 40 Company Stocks Set to Gain

Prime Minister Narendra Modi’s Independence Day announcement on a new GST structure has given the stock market a big push. Investors are excited because this could be the biggest tax reform since GST began in 2017.

The plan is to replace the complicated four-slab GST system with just two main rates – 5% and 18% (except for sin goods like liquor and tobacco). This means many everyday items and big-ticket products will get cheaper:

• Goods currently taxed at 12% will mostly drop to 5%.

• Most products in the 28% slab will come down to 18%.

For families, this could mean 4–5% lower prices on several things they buy. For companies, it means more people spending, which is great for business.

Who Stands to Benefit?

• Automobiles – Two-wheelers, small cars, and trucks may get cheaper. Big winners: Bajaj Auto, Hero MotoCorp, TVS Motor, Eicher Motors.

• Cement – Prices may fall by around 8%, which is a huge positive for the sector.

• Consumer Durables – Products like air conditioners, big TVs, and appliances could see lower taxes, helping companies such as Voltas, Blue Star, Havells, and Dixon Technologies.

• Banks – With people spending more, loan and credit demand may rise. Likely gainers: ICICI Bank, HDFC Bank, IDFC First Bank.

Experts also believe cheaper goods could help reduce inflation slightly (by about 0.5%).

The Bottom Line

More than 40 listed companies across different sectors are expected to benefit once the new GST slabs are rolled out. The final approval is expected by the GST Council around the third quarter of FY26.