ITC and Godfrey Phillips shares decline amid GST hike report

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Shares of ITC, Varun Beverages and Godfrey Phillips India ended lower on Tuesday after the Group of Ministers on GST rate rationalisation decided to hike tax on sin goods like aerated beverages, cigarettes, tobacco and related products to 35 per cent from the present 28 per cent.


The stock of ITC declined 1.02 per cent to settle at Rs 472.30 on the BSE. During the day, it went lower by 3 per cent to Rs 462.80.


VST Industries' stock dipped 2.27 per cent to Rs 318.30 in intra day but recovered the lost ground and ended at Rs 327.90, up 0.68 per cent.


Shares of Varun Beverages dropped 1.86 per cent to settle at Rs 621 apiece after tumbling 5.18 per cent to Rs 600 during the day.


Godfrey Phillips India slipped 1.71 per cent to finish at Rs 5,659.50. Intra-day, it fell 3.16 per cent to Rs 5,575.50.


The Group of Ministers (GoM) report is expected to be discussed by the GST Council -- chaired by Union Finance Minister and comprising her state counterparts -- on December 21. A final decision on GST rate changes will be taken by the council.


"The GoM has agreed to propose a special rate of 35 per cent on tobacco and related products and aerated beverages. The four-tier tax slab of 5, 12, 18, and 28 per cent will continue and a new rate of 35 per cent is proposed by the GoM," an official said.
(Except for the headline, this story has not been edited by News Agency staff and is published from a syndicated feed.)