GST Hike on Sin Goods Agitates Market

Shares of companies like ITC and Godfrey Phillips fell as the Group of Ministers proposed increasing GST on sin goods to 35% from 28%. The GST Council will discuss this recommendation on December 21. The move affects the aerated beverages and tobacco sectors.

In a market shake-up, shares of ITC, Varun Beverages, and Godfrey Phillips India took a hit on Tuesday due to a proposed increase in GST on sin goods.

The Group of Ministers on GST rate rationalisation suggested the tax hike from 28% to 35% on items like aerated beverages and tobacco. This move sent shares of major industries into a downward spiral.

The GST Council, chaired by the Union Finance Minister, is expected to discuss the proposal on December 21, marking a crucial date for the final decision on GST rate changes.

(With inputs from agencies.)