Chennai: Indian stocks markets extended the Friday’s rally today by moving sharply higher in early trade. The Sensex as much as 1,331 points to 39,346 at day’s high, adding to Friday’s mammoth 1,921-point rally. The Nifty also rose to 11,666 at day’s high today.
Shares of hotel companies rallied up to 16 per cent on the BSE in the early morning deals on Monday after the Goods and Services Tax (GST) Council approved proposal to cut tax rates on hotel tariffs.
On Friday, the government slashed corporate tax rates in a surprise move designed to woo manufacturers and revive private investment and lift growth from a six-year low. The move will cost the government Rs 1.45 lakh crore in the current fiscal year in terms of lost revenue.
Post market hours on Friday, the GST Council reduced tax rate on hotel room tariffs, a move aimed at giving a boost to the hospitality sector.
The GST (goods and services tax) rate on hotel rooms with tariffs of up to Rs 7,500 per night has been cut to 12 per cent from the existing 18 per cent, officials attending the GST Council meet said. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent. There will be no GST on room tariffs of below Rs 1,000 per night.