GST Shake-up 2025: Centre Accepts Proposal to Scrap 12% & 18% Slabs, Big Relief for Consumers

Welcome Back Investor!

BSE shares plunged 7% after SEBI Chairman Madhabi Puri Buch flagged the “alarming rise” in equity derivatives trading, warning that it could destabilize the market. Her comments triggered investor panic, with concerns that stricter regulations may soon follow. For retail traders, this is a wake-up call - short-term bets might face heavier scrutiny, and the era of easy speculation could be nearing its end.

Let’s dive in!

But before we start!

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Today’s Market Menu

▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Special

▪️ Mindset

▪️ Stock Screener to up your game

IMPACT NEWS

GST Rejig 2025: Relief Ahead for Consumers & Businesses 🚀

India is gearing up for one of the biggest overhauls of its Goods and Services Tax (GST) regime since its launch. The Group of Ministers (GoM) has accepted the Centre’s proposal to scrap the 12% and 18% slabs and move towards a more streamlined structure. Under the new framework, most goods and services will now fall into two core brackets - 5% and 18% - with a higher 40% levy on sin and ultra - luxury items.

The rationale is clear: the earlier four-tier system (5%, 12%, 18%, 28%) created endless confusion, frequent disputes, and compliance challenges. For instance, something as simple as categorizing food items or packaged products often ended up in prolonged tax battles. By merging slabs, the government aims to reduce ambiguity, simplify compliance, and create a more business-friendly ecosystem.

Consumers stand to benefit the most, with 99% of items in the 12% slab moving down to 5%. Everyday essentials, FMCG products, and personal care goods could see price reductions. Similarly, a large chunk of goods in the 28% bracket will shift to 18%, potentially spurring demand in autos, consumer durables, and retail.

If implemented smoothly, this reform could not only boost consumption but also lift GDP growth and cool inflationary pressures, marking a crucial step in India’s tax evolution.

MARKETS

Today in the Market, the Sensex closed at 82,000.71 (+0.17%) and Nifty50 at 25,083.75 (+0.13%), extending gains for the 6th straight session, while Nifty Midcap 100 fell 0.38%. The rally was driven by financials, insurers, Reliance (+1% on JPMorgan upgrade), and hopes of GST cuts & S&P rating boost, though IT stocks dipped on Fed concerns. Broader markets stayed weak, with Concord Biotech up 6%, but BSE & Angel One down 7% on SEBI’s F&O review.
_{Closing figures as on 21.08.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ PG Electroplast (+4.20% to ₹559.15): Jumped on bargain hunting and short-covering after last week’s heavy fall; technical rebound rather than fresh news.

✅ Mankind Pharma (+3.73% to ₹2,600.10): Rose on broad strength in pharma stocks, as investors moved into defensives; no new company filing today.

✅ Cipla (+3.02% to ₹1,592.80): Among the top Nifty gainers, supported by sector-wide pharma demand and defensive buying.

✅ Aditya Birla Capital (+2.77% to ₹291.30): Gained after reports that its ARC (asset reconstruction JV) delivered a 40% IRR, boosting sentiment in group financial businesses.

Top Losers

🔻 BSE Ltd (-7.56% to ₹2,332.20): Fell sharply after SEBI proposed extending derivative contract tenures, raising worries about lower trading volumes and revenues for exchanges.

🔻 Angel One (-6.73% to ₹2,537.80): Declined on the same SEBI announcement broking firms may face pressure if derivative structures change, leading to profit-taking.

🔻 MCX India (-3.61% to ₹7,927.00): Dropped as RBI released draft risk norms for clearing members in equity & commodity derivatives, sparking caution.

🔻 Dabur India (-3.61% to ₹515.70): Slipped due to profit-booking in FMCG stocks after a recent rally; no negative company-specific news.

INDIA FRONTIER

Everything else you need to know today

💰 Boost: Adani Group firms have secured $275 million via foreign currency loans, signaling renewed confidence from global lenders. This fresh capital injection strengthens the conglomerate’s refinancing plans and eases investor concerns post-Hindenburg.

⚡ Surge: At the BS Infra Summit, Tata Power CEO Praveer Sinha highlighted massive funding needs in India’s power sector, with a sharp focus on renewables and grid expansion. His call for private and global capital underscores a bigger question: is India ready to meet its ambitious clean energy targets on time?

🎮 Setback: Nazara’s stock faces turbulence as analysts warn that the ₹800 crore PokerBaazi bet could be wiped out under India’s new online gaming bill. With stricter rules on real-money gaming, the company’s high-stakes play may now turn into a costly gamble.

🚪 Gateway: SEBI is considering a regulated platform for pre-IPO companies, giving investors a transparent route to access startups before they go public. If launched, it could transform India’s private market - bridging the gap between venture funding and public markets.

SPECIAL

Trump Tariffs Jolt India: Short-Term Blip or Long-Term Pain?

India is grappling with a fresh wave of economic uncertainty as U.S. President Trump doubles down on tariff hikes - bringing the total rate to a staggering 50% on Indian exports. This aggressive move comprises a 25% “reciprocal” tariff plus another 25% penalty linked to India’s oil dealings with Russia.

The immediate fallout was clear: sectors like textiles, auto components, pharmaceuticals, and gems & jewellery - all with deep exposure to U.S. demand - have been hit hard. Forecasts are declining swiftly: earnings estimates for large and mid-cap firms dropped by 1.2% in just two weeks, the sharpest in Asia.

Despite this, markets are showing resilience. Analysts still expect only modest stock gains by year-end, with a record high now pushed to 2026 - thanks to robust domestic demand and optimism around internal reforms like upcoming GST rate rationalization.

Investor sentiment remains cautious but hopeful. Jefferies’ Christopher Wood encourages capitalizing on dips, betting that tariffs may eventually be rolled back.

India now faces a delicate balancing act: painful short-term impacts collide with long-term opportunities to reorient trade and reinforce domestic resilience.

THE HANOOMAAN INSTITUTE

📚 The Books Millionaires Read (That Most People Skip)

Ever notice how wealthy people often read books the rest of us overlook? It’s not just taste - it’s mindset. They deliberately reach for books that stretch perspective, challenge assumptions, and sharpen decision-making.

A recent list of must-reads among “middle-class millionaires” highlights this difference:

• Classics like The Intelligent Investor by Benjamin Graham teach patience and value-thinking.

• Works like Principles by Ray Dalio decode systems thinking and disciplined execution.

• Books such as The Millionaire Next Door break the myth that wealth is about flashy lifestyles.

• And biographies of business builders- from Rockefeller to Jobs - give timeless lessons on resilience, risk, and reinvention.

It’s not about the books themselves. It’s about choosing to wrestle with dense, uncomfortable ideas when others won’t. While most people skim motivational quotes, the wealthy are digging into frameworks, case studies, and principles that shift how they act in the real world.

If wealth-building is 80% psychology and 20% mechanics, then books are the quiet gym where your financial mindset trains.

So ask yourself: Are you reading for entertainment… or transformation?

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

Good FCF Yield and Growth
by - Jindal Naveen

Market Capitalization > 100 AND
Sales growth 3Years > 20 AND
Profit growth 3Years > 20 AND
Price to Free Cash Flow <5 AND
Price to Free Cash Flow > 0 AND
Price to Earning < ( Sales growth 3Years - 5)

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

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