The Goods and Services Tax (GST) Council, in its 56th meeting held on Wednesday and spanning over 10 hours, approved a fresh wave of next-generation reforms to the eight-year-old indirect tax system. The decision lays the foundation for a simplified two-slab structure of 5 percent and 18 percent, with a steep 40 percent rate reserved exclusively for luxury, sin, and other demerit goods.
The reforms are aimed at easing the tax burden on the public through significant rate rationalisation and slab reduction. They also seek to unlock working capital for businesses and enhance ease of doing business by streamlining processes such as automated refunds and simplified registrations.
Alongside major sectors like automobiles, insurance, cement, fertilisers, and FMCG, consumers stand to gain from notable cuts in GST rates on major electronic goods. Under the new structure, gadgets and household appliances will become more affordable, offering direct relief to everyday buyers.
Effective 22 September, the revised GST rates will apply to four major electronic categories: air conditioners, televisions larger than 32 inches (including LED and LCD models), monitors and projectors, and dishwashing machines. Previously taxed at the higher luxury slab of 28 percent, these products will now be brought under the standard 18 percent bracket. According to the GST Council, the move is part of a broader strategy to simplify the tax framework while easing the financial burden on consumers.
Following are a few stocks that might benefit from the GST cut on consumer electronics, including ACs, dishwashers, and more:
Voltas Limited
With a market cap of Rs. 46,323 crores, the stock jumped by around 3 percent on BSE to hit an intraday high at Rs. 1469.9 on Thursday. Voltas Limited, part of the Tata Group, is engaged in the business of AC, refrigeration, air coolers, electromechanical projects, rural electrification, solar and water projects, along with engineering product services for mining & construction equipment and the textile industry.
Whirlpool of India Limited
With a market cap of Rs. 17,182 crores, the stock jumped by around 4 percent on BSE to hit an intraday high at Rs. 1399.4 on Thursday. Whirlpool of India Limited is one of the leading manufacturers and marketers of major home appliances in the country. It is primarily engaged in the manufacturing and trading of refrigerators, washing machines, air conditioners, microwave ovens, built-in and small appliances and caters to both domestic and international markets.
Havells India Limited
With a market cap of Rs. 99,290 crores, the stock jumped by around 2 percent on BSE to hit an intraday high at Rs. 1598.75 on Thursday. Havells India Limited is consumer electrical/electronics and power distribution equipment manufacturer with products ranging from industrial and domestic circuit protection switchgears, cables, motors, solar products, fans, LED lamps and luminaries, modular switches, TV, water heaters, coolers and domestic appliances, air & water purifier, AC, washing machine and refrigerator covering the entire range of household, commercial and industrial electrical needs.
IFB Industries Limited
With a market cap of Rs. 6,132.5 crores, the stock jumped by around 2.5 percent on BSE to hit an intraday high at Rs. 1596.15 on Thursday. IFB Industries Limited is engaged in the business of manufacturing fine blanked and stamping components, manufacturing and trading of home appliances, and the manufacture of cold rolled steel strips and motors.
Dixon Technologies (India) Limited
With a market cap of Rs. 1.07 lakh crores, the stock jumped by around 2 percent on BSE to hit an intraday high at Rs. 18,048.05 on Thursday. Dixon Technologies (India) Limited is India’s largest homegrown, design-focused solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets.
The company’s diversified product portfolio includes consumer electronics such as LED TVs, home appliances like washing machines and refrigerators, lighting products including LED bulbs, tube lights, and downlighters, as well as mobile phones, wearable and hearable devices, and telecom and IT hardware products. The company also offers reverse logistics services, including the repair and refurbishment of LED TV panels.
Written by Shivani Singh
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