Consumer durables' stocks jump; Amber Enterprises zooms nearly 8 pc

New Delhi, Aug 18 (PTI) Consumer durables stocks surged on Monday, with Amber Enterprises jumping nearly 8 per cent, buoyed by plans for big bang reforms in the GST regime by Diwali.

The Centre has proposed a two-tier GST structure of 5 per cent and 18 per cent, besides a 40 per cent special rate on a select few items, to the Group of Ministers on GST rate rationalisation.

Shares of Amber Enterprises India zoomed 7.93 per cent, Blue Star surged 7.35 per cent, Voltas jumped 5.78 per cent, Havells India climbed 5.12 per cent, Whirlpool of India (4.74 per cent) and Symphony (3.69 per cent) on the BSE.

The BSE consumer durables index climbed 3.08 per cent to 60,879.51.

Godrej Appliances said the proposed reduction in tax slabs will significantly help to boost consumption and drive appliances demand.

"The AC penetration level in India is still low at 9 per cent to 10 per cent. Therefore, GST reduction from 28 per cent to 18 per cent on ACs can help to make it more affordable to the masses and improve the quality of life for many Indians," said Kamal Nandi, business head & EVP, Appliances Business at Godrej Enterprises Group.

According to Nandi, currently room ACs are taxed at 28 per cent, and other appliances such as refrigerators, washing machines, microwaves already have 18 per cent GST.

The Centre has proposed two-slab structure of 5 and 18 per cent classifying items under the category of 'merit' and 'standard' and the broad principle followed in the classification is to reduce tax burden for middle class, MSMEs, and the farm sector.

Goods and Services Tax (GST) is currently levied at 5 per cent, 12 per cent, 18 per cent and 28 per cent. While food and essential items are either at nil or 5 per cent, luxury and demerit goods are in the 28 per cent slab, with a cess on top of it. PTI SUM SUM MR