Dabur India and 2 other stocks jump after GST council likely to cut tax slab from 12% to 5%

The Goods and Services Tax (GST) Council is expected to take up key reforms in its upcoming meeting, with discussions likely to focus on reducing the 12 percent tax slab and clarifying the tax treatment of service intermediaries a move that could bring significant relief worth thousands of crores to the industry, according to a few sources.

The government is reportedly exploring the idea of phasing out the 12 percent GST slab. Under the proposed restructuring, many items currently taxed at 12 percent, such as toothpaste, umbrellas, sewing machines, and kitchen utensils, could be moved to the lower 5 percent category. This rationalisation effort aims to simplify the tax structure and ease the burden on consumers.

The GST Council, which brings together representatives from the Centre and states, is expected to formally discuss these proposals in its next meeting. Although the meeting was originally scheduled for June, disagreements among Council members over the venue have caused delays. The session is now likely to take place in July 2025, marking more than six months since the Council last convened in December 2024 in Jaisalmer. As per established norms, the GST Council is supposed to meet once every quarter.

Here are three stocks that saw an uptick in their share prices following reports that the government may eliminate the 12 percent GST slab:

Colgate-Palmolive India Limited

With a market cap of Rs. 66,280 crores, the stock moved up by nearly 2.2 percent on BSE, to hit an intraday high at Rs. 2,461.7 on Wednesday. Colgate-Palmolive (India) Limited is engaged in the business of manufacturing and trading of toothpaste, tooth powder, toothbrush, mouthwash, and personal care products.

Premium products such as Colgate Visible White and Colgate Total have been growing at about twice the pace of the overall category, backed by ongoing scientific development. In the toothbrush market, the company sees room to drive growth by encouraging more frequent product replacements and helping consumers shift toward higher-end options.

Dabur India Limited 

With a market cap of Rs. 86,458.5 crores, the stock moved up by nearly 1 percent on BSE, to close in the green at Rs. 487.45 on Wednesday. Dabur has emerged as a key driver of growth in the oral care segment and now holds the position of the second-largest player in India’s dentifrice (toothpaste) market. The brand’s success is powered by a diverse and distinctly positioned product portfolio, which includes the Ayurvedic-focused Dabur Red Paste, herbal variants like Dabur Babool and Meswak.

Dabur’s Oral Care penetration has made its way into over half of Indian households, with penetration rising to 51 percent. In other words, one in every two homes in the country now uses a Dabur oral care product. The business recorded a robust 11.3 percent growth in FY24, maintaining a strong 4-year CAGR of 12.1 percent. The category also played a significant role in Dabur’s overall performance, contributing 18.6 percent to its total FMCG revenue in India during the year.

Stove Kraft Limited 

With a market cap of Rs. 1,976 crores, the stock moved up by nearly 3 percent on BSE, hit an intraday high at Rs. 601 on Wednesday. Stove Kraft Limited is engaged primarily in the business of manufacturing pressure cookers, LPG stoves, non-stick cookware, and trading of other kitchen and electrical appliances under the brand names Pigeon, Pigeon LED, and “Gilma”. It also possesses a licensing agreement with Stanley Black & Decker on certain categories of appliances.

Written by Shivani Singh

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