New Delhi: Shares of tyre companies on Thursday surged up to 7 percent in intraday trade amid reports that the Goods and Services Tax (GST) Council is likely to slash tax rates on automobile tyres to 18 per cent from 28 per cent, currently, in its next meeting on 22 December.
On the BSE, JK Tyres gained the most as it was trading 7.52 percent higher at Rs 110.70, while Apollo Tyres gained 2.25 percent to Rs 244.90.
TVS Srichakra gained 3.47 percent to Rs 2,628.60. MRF rose 0.92 percent to Rs 69,883.55 and CEAT advanced 2.14 percent to Rs 1,373.
The move is part of the government's overall plan to rationalise the highest tax bracket of 28 percent after Prime Minister Narendra Modi on Tuesday said that 99 percent of over 1,200 goods and services will attract 18 percent or less GST.
"A 28 percent tax on automobile tyres impacts common man because ultimately he has to shell out the tax. The overall focus on 22 December council meet will be to lessen the GST burden on common man," an official had said.
Updated Date: Dec 20, 2018 14:26:29 IST