The government is all set to introduce the Goods and Services Tax (GST) in the Rajya Sabha next week and in all probability the GST maybe implemented from April 1, 2017. GST implementation is likely to lead to expansion in margins and an increase in GDP. Here are a select few companies that will benefit from the implementation.
It is believed that the implementation of GST will result in lower taxes for entertainment companies like PVR Cinemas. The stock of the company has gone up significantly in the last few months and analysts say there is room for more.
UBS recently put out a report on companies that could benefit from GST implementation and one company it said would benefit is Exide.
GST Implementation to Benefit Godrej
While GST maybe neutral for most companies like Godrej, they stand to benefit from reduced warehousing costs and also from rationalisation of taxes.
Havells, Bajaj and Crompton to Gain
Again like Britannia, Bajaj Electricals and other electrical manufacturers like Havells and Crompton Greaves are also seen benefiting.
Reduced Tax Burden Likely
Auto companies are likely to see a reduced tax burden. This could lead to an expansion in margins.
Leading Tile Manufacturer
Better logistics and warehousing management could also lead to tile companies like Kajaria benefiting from GST implementation.
Britannia to Benefit
Rationalisation of taxes will benefit a FMCG company like Britannia. Costs savings are seen in logistics and also due to such rationalisation.