Nazara Tech, Delta Corp, ITC and more: stocks to watch out for as key GST proposals come up for consideration on Oct 7

The 52nd meeting of the Goods and Services Tax (GST) Council that is scheduled for Saturday, October 7, could take up matters like offering clarity on the slew of demand notices apart from pending proposals for rate restructuring in items including millets and the setting up of the GST Appellate Tribunals.

Nazara Technologies, Delta Corp

— The GST Council in its upcoming meeting will likely review the implementation of the 28% levy on online gaming, horse racing and casinos. While the government has notified the implementation of the levy from October 1, there remains uncertainty about how it will be levied as a number of states are yet to pass enabling legislation or promulgate ordinances for it. Industry has also sought clarification from the Centre on the matter.

ITC — The fitment committee nominated by the GST Council has put down the proposal to reconsider the compensation cess on tobacco products. The tobacco industry had sought "uniform additional compensation cess on cigarettes, compensation cess on bidis, additional compensation cess on smokeless tobacco products, or lower compensation cess on cigarette sticks up to 70 mm". Currently, tobacco products such as cigarettes, chewing tobacco, gutkha, etc. attract GST, compensation cess, basic excise duty and national calamity contingent duty (NCCD). Bidis, on the other hand, attract GST, basic excise duty and national calamity contingent duty (NCCD) but no compensation cess.

Amara Raja Batteries, Exide Industries — The committee has rejected the proposal to reduce GST on lithium-ion batteries used in electric vehicles (EV) to 5% from 18%.

Larsen & Toubro, KEC International, Patel Engineering, G R Infraprojects, NCC, PNC Infratech, KNR Construct, among others — The council will discuss and review GST on various public contracts on government-related constructions that are not for sale, like bridges, roads, industrial units.

The council is also likely to consider extending the concessional tax rate of 18% on vehicles purchased by visually impaired persons and clarify the levy of tax on bank and corporate guarantees provided by directors and promoters to a company and its subsidiaries.