Biggest GST Revamp Lifts Investor Mood; Sensex, Nifty Trade Higher

The BSE Sensex and NSE Nifty rallied more than one per cent on Thursday (4 September) after the GST Council unveiled the biggest revamp of the eight-year-old indirect tax system, sparking optimism among investors, reported The Indian Express.

The Sensex jumped 888.96 points, or 1.01 per cent, to open at 81,456.67 from its previous close of 80,567.71, while the Nifty surged 265.7 points, or 1.07 per cent, to open at 24,980.75.

At around 1.10 pm, the BSE Sensex was up 460 points, or 0.57 per cent, at 81,028 from previous close, while the Nifty was up 100 points, at 24,815.

Chaired by Finance Minister Nirmala Sitharaman, the Council scrapped the existing four-tier GST slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent and introduced a simplified two-slab structure of 5 per cent and 18 per cent.

The new rates, effective from 22 September — the first day of Navratri — will cut prices of packaged foods, toiletries, bicycles, and other daily-use items.

Life and health insurance plans bought by individuals will be fully exempt from GST, while super luxury and sin goods will face a 40 per cent levy.

White goods such as air conditioners, TVs, and dishwashers now fall under the 18 per cent slab, down from 28 per cent.

Small cars meeting specific engine and length criteria will also attract only 18 per cent GST.

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Also Read: India Clears Major GST Reforms: Simplified Regime With Two Slabs Of 5 Per Cent And 18 Per Cent To Begin 22 September— All About It