GST 2.0 aims to simplify India’s tax structure with major rate cuts. Discover the sectors set to benefit and the top 40+ stocks analysts are betting on for 2025.
📌 Summary (for Featured Snippet)
GST Reform 2.0 proposes collapsing the current four-slab GST system into two main rates — 5% and 18% — with a 40% slab for sin/luxury goods. Analysts expect this to lower retail prices by 4–8%, boost consumption, and benefit sectors like automobiles, cement, FMCG, consumer durables, insurance, hospitality, and retail. Over 40 stocks are in focus, including Maruti Suzuki, Ultratech Cement, HDFC Bank, Voltas, and ITC.
🏛 Blog Post Structure
1️⃣ Introduction – Why GST 2.0 Matters Now
- Context: First major GST overhaul since 2017.
- Market sentiment: Nifty/Sensex rally post-announcement.
- Macro view: Potential CPI inflation easing by 50–60 bps over a year.
2️⃣ Key GST 2.0 Proposals
- Two Main Slabs: 5% & 18% (scrapping 12% & 28% for most goods).
- 40% Sin/Luxury Slab: Tobacco, pan masala, online gaming.
- Impact:
- 99% of goods in 12% slab → 5%
- 90% of goods in 28% slab → 18%
- Expected Outcome: Lower retail prices, higher consumption, simplified compliance2.
3️⃣ Sectoral Impact & Beneficiary Stocks
| Sector | Why It Benefits | Top Stocks |
|---|---|---|
| Automobiles | GST cut from 28% → 18% on vehicles; boosts affordability | Maruti Suzuki, Tata Motors, Hero MotoCorp, Bajaj Auto, TVS Motor, Eicher Motors, Ashok Leyland, Mahindra & Mahindra, Escorts2 |
| Cement | Price drop ~7.5–8% from GST cut; real estate margin boost | Ultratech Cement, JK Cement, HeidelbergCement |
| Consumer Durables | ACs & white goods GST cut from 28% → 18% | Voltas, Havells, Blue Star, Amber Enterprises, Whirlpool |
| FMCG | Lower input GST; some products move to 5% slab | Hindustan Unilever, Britannia, Dabur, Emami, ITC |
| Financials/NBFCs | Higher credit demand; lower EMI burden | HDFC Bank, ICICI Bank, IDFC First Bank, Bajaj Finance |
| Insurance | Premium GST cut from 18% → 5% or exemption | HDFC Life, Max Life, Niva Bupa, Star Health |
| Hospitality | GST on sub-₹7,500 rooms cut from 12% → 5% | Lemon Tree Hotels, Indian Hotels |
| Retail/Apparel | Footwear <₹1,000 back to 5% slab | Relaxo, Bata India, Campus Activewear |
| Logistics/Quick Commerce | Higher volumes from consumption boost | Delhivery, Swiggy, Eternal |
Conclusion – The Road Ahead
- GST 2.0 could be the biggest consumption stimulus since GST’s launch.
- Implementation timelines hinge on GST Council approval.
- Early positioning in beneficiary sectors could yield above-market returns in FY26.
