Following the agreement to increase the existing 28 per cent GST on items like aerated drinks, cigarettes, tobacco and related products to 35 per cent, shares of related companies witnessed a decline in the morning trade. ITC shares fell 3 per cent to Rs 462.80 on BSE. Shares of VST Industries fell 2.27 percent to Rs 318.30. Besides, shares of Varun Beverages fell 5.18 per cent to Rs 600.
Expected to be discussed on December 21
According to the news, the impact of the decision taken by the Group of Ministers (GoM) on GST rate rationalization is visible. The GoM report is expected to be discussed by the GST Council – chaired by the Union Finance Minister and comprising his state counterparts – on December 21. According to PTI news, the final decision on the change in GST rate will be taken by the Council. An official said the Group of Ministers has agreed to propose a special rate of 35 per cent on tobacco and related products and aerated beverages. The four-tier tax slabs of 5, 12, 18 and 28 percent will continue and a new rate of 35 percent has been proposed by the Group of Ministers.
Know the latest prices
However, despite a slight improvement at 12.52 pm, ITC Ltd’s share price was down by 1.37 per cent at ₹470.60 per share. Similarly, VST Industries, however, was back in the red and was up 0.09% at ₹326.00 per share in the same period. Moreover, Varun Beverages share price was seen trading 1.95% lower at Rs 620.45.
The proposal came last October
In the last meeting held in October, the Group of Ministers had proposed reducing GST on packaged drinking water of 20 liters and above from 18 percent to 5 percent. According to reports, the Group of Ministers had also proposed reducing GST on bicycles priced below Rs 10,000 from 12 per cent to 5 per cent.
