Many large companies to move Appellate Authority against GST demand notices
In recent days, an increasing number of GST notices have been sent to many companies mainly on account of alleged discrepancy in input tax credit (ITC).
With the Goods and Services Tax (GST) rate fixed at three per cent for gold, stocks of gems and jewellery companies like PC Jeweller, Titan, Tribhovandas Bhimji Zaveri (TBZ), Gitanjali Gems and Tara Jewels shone and hit fresh highs on Monday.
Around 2.10 pm shares of Delhi-based PC Jeweller traded higher by 10.96 per cent at Rs.558.20 per share on the BSE.
Scrips of Titan Company led the rally by trading at Rs.555.35 per share-up 17.60 per cent-followed by TBZ (up 6.51 per cent at Rs.99 per share), Tara Jewels (up 5.25 per cent at Rs.30.05 per share) and Gitanjali Gems (up five per cent at Rs.70.40 per share).
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However, shares of gold and diamond jewellery manufacturer Rajesh Exports traded lower by 0.54 per cent at Rs.649 per share.
"Shares of jewellery stocks surged after the tax on gold and jewellery was fixed at three per cent, which is lower than the expectation of five per cent. On an average, jewellery stocks have gained more than six per cent," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
"With the implementation of GST, compliance level will increase which will benefit the organised sector against the unorganised sector. So the surge in prices is factoring better-than-expected tax rate and level playing field for organised sector against the unorganised sector," Desai said
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