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