Shares of ITC Limited witnessed a 1.56% increase today, trading at ₹467, following comments from the junior finance minister clarifying that there are no ongoing discussions to introduce a 35% GST slab on cigarettes.
JUNIOR FINANCE MIINISTER SAYS
POSTIVE FOR ITC
NO DISCUSSION ON 35% GST SLABS ON CIGARTTES
— RedboxGlobal India (@REDBOXINDIA) December 13, 2024
The clarification comes after reports emerged earlier about a proposal from the Group of Ministers (GoM) for a “special rate” of 35% GST on tobacco products and aerated beverages.
The GoM’s proposal suggested raising the GST rate for tobacco products from the current 28% to 35%, while tobacco leaves are taxed at 5% under the reverse charge mechanism, where the recipient, not the supplier, pays the tax. However, the minister’s statement has reassured investors, leading to an uptick in ITC’s stock price.
As of now, ITC remains a key player in the FMCG and tobacco sectors, continuing to attract attention from institutional and retail investors.
