Historic GST Reforms: These Companies and Sectors to Benefit the Most, Report Reveals

National Desk: The recent GST rate cuts announced by the GST Council are set to bring a major shift in multiple sectors. Global financial services firm Bernstein has released a report highlighting which companies and industries are likely to gain the most from this tax reform. According to the report, the sectors that will see the most positive impact include footwear, quick-service restaurants (QSR), FMCG, and grocery retailers.

Direct Advantage for FMCG Sector
One of the key takeaways from Bernstein’s report is the significant cut in GST on personal care and household products such as soaps, shampoos, hair oils, and toothpaste—from 12–18% down to just 5%. This move will directly benefit FMCG companies, allowing them to retain a larger share of consumer spending. In the medium term, the reduced rates are also expected to boost demand across the sector.

Retail Giants Set to Gain
The report further points out that retailers like D-Mart, Vishal Mega Mart, and Star (a Trent subsidiary), along with online quick-commerce firms, will also see strong gains from the GST revision. In the apparel and footwear category, items priced between ₹1,000 and ₹2,500 will now attract only 5% GST. This change is expected to benefit companies such as Trent, Aditya Birla Lifestyle Brands Limited (ABLBL), and Aditya Birla Fashion and Retail (ABFRL), as a large share of their products fall within this price bracket.

QSR Firms in a Sweet Spot
Quick-service restaurant (QSR) players are also among the biggest winners. The reduction of GST on inputs such as paneer, packaging materials, and spices will directly improve their margins. Since QSR firms cannot claim input tax credits, the GST paid on these items was previously an added cost. With the new tax structure, their gross margins will improve considerably. According to the report, Jubilant FoodWorks is expected to be one of the biggest beneficiaries.

These sweeping changes will take effect from September 22, aiming not only to reduce the tax burden on citizens but also to accelerate economic growth across key sectors.