Business Business News FinanceGST: Muted income for companies for Q1 By Nitika SethiPosted on June 22, 2017 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Growth and Service Tax (GST) will come into effect from July 1 and companies are already feeling the heat of lower earnings in the first quarter of this Financial Year. Customers wish to avail the tax benefits from the next quarter and companies are taking a hit on their inventory which would sell without the tax benefit of ‘One Nation One Tax’. The companies to take the most hit are the FMCG and auto industry. Experts think that the June quarter results would be muted for the two markets mainly with GST Council fixing tax slabs on over 1200 goods and 500 services at 5, 12, 18 and 28 percent. This would lead to a better earning for FMCG, auto and building industry in the long run but this quarter sale would be low owing to no tax benefits. While many companies would face a disruption in the short term because of lack of clarity about the procedure of GST, experts believe that it would also provide a good opportunity to get into quality stocks.Companies like Bajaj and Voltas could be among the ones to report a muted earning this quarter due to GST. Voltas would face a higher set of problems because of the implementation of a 28 percent GST as compared to the current 23 percent. India Hotel, the largest hotel chain in India, would also be among the companies facing lower incomes due to the 28 percent tax slab.Havells India would also face the muted income due to the 28 percent tax slab from the current 18 percent. Titan would face difficulties due to a net charge of 15.67 percent tax rate on gold jewelry as compared to the current 12.43 percent. Marico, the brand that sells hair and face care products of the acquired brand Beardo, would also face a 28 percent GST.Arvind, the brand that sells man-made apparels would also most likely be levied with a 12 percent tax as compared to the current 7 percent tax.