Shares of Colgate-Palmolive (India) Ltd. climbed as much as 8% on Friday, October 9, after the GST Council recommended expanding input tax credit (ITC) eligibility to cover additional business expenditures.
The recommendations, announced after the GST Council’s meeting on October 8 include removing restrictions on input tax credit for certain expenses, including employee health and life insurance, telecommunications towers and pipelines outside factory premises.
The Council also recommended allowing ITC on free samples and goods written off after expiry where destruction is required by law.
The changes are part of broader GST reforms aimed at reducing cascading taxes and easing working-capital pressures for businesses. The impact on Colgate-Palmolive India will depend on the applicability of the revised provisions to its operations.
Separately, the oral-care company benefited from a reduction in GST on oral-care products from 18% to 5% last year.
Analysts have also flagged costs associated with the inverted duty structure (IDS), estimating the impact on the company at around 80-100 basis points. The implications of the latest ITC recommendations for these costs will be a key monitorable.
Last month, Colgate-Palmolive India outlined its growth strategy at an investor day, identifying premiumisation and higher usage frequency as key growth drivers. Management indicated that revenue growth could outpace profitability as the company increases advertising and marketing investments to strengthen its brands.
Manish Anandani took charge as Managing Director and Chief Executive Officer on September 28, 2026. The company reported its strongest revenue growth in 12 quarters in Q1 FY27, according to the details provided.
Colgate-Palmolive India shares were trading 5.75% higher at ₹1,840 on Friday. Despite the gains, the stock remains around 50% below its all-time high.
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