The recent GST cuts have benefited many industries. As a result, some stocks are expected to perform well.
Explore the best stocks that could surge after GST Cuts from Maruti Suzuki to HUL.
Summary of GST Rate Cuts
In a landmark decision, the GST Council announced major changes that would take effect from September 22, 2025, streamlining the tax structure and lowering rates in important consumer categories.
The old five-slab system (0%, 5%, 12%, 18%, and 28%) has been reduced to only three: 5%, 18%, and 40% (for sin and luxury items).
Sectors That Benefited the Most from GST
The latest GST cuts have boosted sectors such as cars, FMCG, and consumer durables. Small vehicles and two-wheelers now attract only 18% GST, making them more inexpensive and likely to boost sales for Maruti Suzuki, Bajaj Auto, and Tata Motors. FMCG companies like HUL, Nestle, and Britannia benefit from lower taxes on packaged foods and personal care products, which boosts margins and rural demand.
Consumer durables such as air conditioners and televisions have also moved to the 18% slab, benefiting companies such as Voltas and Havells. The cement sector received a rate reduction from 28% to 18%, lowering construction costs and boosting real estate expansion. Meanwhile, healthcare and insurance benefited from GST exemptions on life-saving pharmaceuticals and select plans, which increased availability and affordability.
Broker Picks
Leading brokerages have highlighted stocks that stand to benefit from the GST change. Here are a few top recommendations:
What's Next?
The GST cuts are projected to stimulate consumption growth, particularly in auto, FMCG, and consumer durables. Analysts forecast higher earnings by Q3 FY26, with mid- and small-cap stocks likely to benefit the most.