Sensex advanced over 100 points in early trade today led by gains in FMCG stocks after the GST Council on Saturday cut rates on over 100 items, amid fresh capital inflows by foreign funds and strengthening rupee.
Indian markets expected to open sideways due to weak Asia cues. Nifty resistance seen at 11180, support seen at 10900,10830.
Former Union Finance Minister P. Chidambaram said that the decision to slash GST rates on 100 mass-use items was taken keeping upcoming assembly elections in mind.
India slashed the sales tax rate on over 50 products in a move aimed at appealing to traders and the middle classes as Prime Minister Narendra Modi’s government eyes next year’s elections.
The GST Council on Saturday reduced tax rates on over 50 items including refrigerators, washing macines and small televisions, which would now be taxed at 18 per cent, down from the current 28 per cent.
Conceding a year long demand, sanitary pads today exempted from GST as the GST Council reduced tax rates on an array of daily use appliances and products.
Delhi Deputy Chief Minister Manish Sisodia on Friday said that the government should either completely abolish the 28 per cent tax bracket or reserve it only for "sin goods."
Sanitary napkins will be exempt from GST, Maharashtra Finance Minister Sudhir Mungantiwar said on Saturday after a meeting of the GST Council.
The 28th Goods and Services Tax (GST) Council meeting is underway in New Delhi.
The GST Council will consider setting up of a National Appellate Tribunal in Delhi with three regional benches with members from judiciary as well as tax departments to hear appeals against the order of the appellate authority set up by states under the GST regime.