GST Bill and its effect on Indian Stock Market

People think about GST (Goods and Services Tax), as the game changer for Indian Economy. And it will directly effect on stock market and overall economy of the nation. In market there are few sectors on which GST may affect negatively as its unknown and undecided tax rate. Also, stocks from these industries which currently enjoy the benefit of lower tax rate than speculated higher tax rate from the passing of GST bill will be negatively impacted.

GST will also affect both ways, positively on some sectors and, negative on few others. Whatever the passing may be, In India, all stock broker companies and investors are anticipating for the opportune moment in markets as provided by GST bill.

For Bank Sector

According to the market experts where bank take 15% tax on few services then it will increase by 18%-20%. Whereas it will gives positive effect on bank sector because GST is good for economy. For this loan demand will increase and this will be good for bank sector.

For Metal Sector

GST will not give any effect on Metal Sector. Presently tax rate is 18% on metal sector they will same as 18% after GST bill.

For Telecom Sector

If GST bill tax rate will considered as 20% or more than 20% than it will give negative effect on Shares of Telecom Sector. In telecom sectors, Companies have near about 15% tax rate. If tax rate will increase much more then it will give much more negative effect on this sector.

For IT Sector

According to the experts, GST will give negative effect on IT sector, but not so much effect gives only little bit effects. Because they will pass on it further. Currently tax rate is 15% on IT sector and after GST this will increase by 3% to 4%. This effect will see on small IT companies. Increasing 5% tax rate not will give any effect on big IT companies.

For Restaurant Sector

Experts says we can see GST effect on restaurant sector. For long term it will not give so much effect on it because after GST consumer expenditure might increase and intern the demand in FMCG industry will increase. This will give good long term effect on all companies.

Here we have discussed about the GST bill and its effect on market. For Demat and Trading Account you can go with Brokers Analysis and check the comparison of top stock brokers.

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