GST rate review could reset demand math for hotels, autos, cement and FMCG
Experts flag proposed shift to a two-slab GST structure as a potential tailwind: cement and small cars/two-wheelers could move from 28% (plus cess for autos) to 18%, with hotels and FMCG also in focus. Demand lift hinges on whether companies pass the cut through to consumers. Awaiting GST Council decision.
Experts say proposed GST rate rationalisation to a two-slab structure could benefit hotels, cement (28% to 18%), autos (small cars/two-wheelers from 28%+cess to 18%), and FMCG, boosting demand if benefits pass through to consumers.