FMCG sector stock news: GST Council on Wednesday night agreed to the much talked about rationalisation of GST rates to a two-slab system of 5% and 18%, with a special rate of 40% on sin and luxury goods. The earlier two slabs of 12% and 28% have been done away with. This development seals the speculations of CNBC-TV18 and a day after Prime Minister Narendra Modi’s Independence Day speech on August 15.

New GST rate change beneficiaries from September 22

FMCG stocks GST: Top gainers on new rate changes

Colgate

The entire Colgate portfolio is expected to get a boost. Toothpaste, toothbrushes, personal wash items and such products will see a drop in GST rate from 18% to 5%, while the tax on toothpowder will fall from 12% to 5%.

Britannia

A large part of Britannia portfolio of nearly 85% is expected to see benefit. Biscuits and cakes, which make up for close to 78% of total sales, will see the rate come down from 18% to 5%. Dairy products which make for about 5% of sales will also see GST impact on FMCG cut to 5%.

Nestlé India

Nestlé India: About 67 per cent of the company’s consolidated topline is expected to benefit from the new GST regime. Coffee and chocolates, which together constitute close to one-third of sales, will see the rate cut from 18% to 5%.

Dabur

Toothpaste, hair oils and shampoos which account for 28% of sales will now be taxed at 5% down from 18%, the brokerage notes. Juices, digestives, ethical FMCG stocks in focus, and toothpowder which make for 25% of sales will see the rate cut to 5% from 12%.

Hindustan Unilever (HUL)

The company’s revenues from products like soaps, shampoos, toothpaste, health food drinks, and coffee, accounting for about 37 per cent of its total revenues, are likely to move down from the 18 per cent GST rate to 5 per cent. Sauces, jams, mayonnaise and noodles, which make for around 3% of sales will see the rate cut to 5% from 12%.