Auto Stocks Surge Amid Upcoming GST Reforms
Auto stocks rallied with Hero MotoCorp leading gains after the announcement of impending GST reforms by Diwali. The sector is set to benefit from restructured tax slabs, reducing the current 28% rate. The reforms aim to resolve disputes related to vehicle classification and boost affordability.
- Country:
- India
On Monday, auto stocks witnessed a significant surge, driven by Hero MotoCorp's nearly 9% leap as investors reacted positively to impending GST reforms.
Prime Minister Narendra Modi confirmed these changes, anticipated by Diwali, which aim to place most goods and services in the 5% and 18% tax brackets, offering a considerable boost to the auto sector.
The reforms plan to lower GST rates for automobiles, currently in the highest tax slab of 28%, promising to enhance affordability and spur demand across the industry.
(With inputs from agencies.)
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