GST On Cigarettes

Tobacco stocks like ITC, VST and Sinnar Bidi fell up to 5 per cent today after govt signaled an extra GST cess on cigarettes and bidis, raising margin risks. Analysts suggest stock strategy ahead

According to media reports, the Indian government could consider raising GST on cigarettes and other tobacco products to 40 per cent once levy of compensation cess on cigarettes is stopped

The stock jumped 4 per cent in Friday's intra-day trade to hit 52-week high of Rs 239 on the BSE

The legal cigarette industry has witnessed a 25% decline in volumes from FY12-13

Sarna assured that only a rectification of imbalance was made, with no impact on price of cigarettes

Changes applicable from midnight of July 17, govt to gain Rs 5,000 in revenue annually