ITC Share Price Fall 3% As GoM Decided To Increase GST On Cigarettes
According to reports, the GoM has suggested raising the tax bracket on cigarettes, tobacco goods, and carbonated drinks from the existing 28% to 35%.
ITC Share Price Fall 3% As GoM Decided To Increase GST On Cigarettes
Shares of firms including ITC and Godfrey Phillips India saw a decline in opening trade on Tuesday amid the report that the tax slab for sin goods like cigarettes, tobacco, carbonated drinks and other related products is to be hiked to 35%.
The GoM, chaired by Bihar Deputy Chief Minister Samrat Choudhary, met others to finalise proposed adjustments to GST rates. Among the key discussions was the tax price on sin products.
Reacting to the news, the ITC stock price declined as much as 3% to Rs. 462.80 in the early trade. In a similar trade, Godfrey Phillips shares fell 3.1% to Rs. 5,575.50, while VST Industries stock dropped 2.3% to Rs 318.30 on the BSE.
In addition, Varun Beverage, a major player in the beverage industry and one of the largest PepsiCo franchisees globally, saw its stock fall by 5% to Rs. 600 during the intraday trading.
However, things are not yet final, as the GST council, chaired by FM, is scheduled to assemble in Jaisalmer on December 21 to make a final decision on what to do and what not to do with this tax proposal. Till then, everyone has to wait for it!
