ITC Shares Surge on Reports of Tobacco Being Included under GST

Source from:  Business day 12/19/2014

ITC shares gained 1.8 per cent on the domestic bourses after reports that tobacco will be included under the Goods and Services Tax (GST).

Media reported that tobacco has been added in the GST ambit after the Cabinet on Wednesday cleared the Bill for the new indirect tax regime.
Analysts said that tax rates for tobacco-based products will most likely be lower with inclusion under GST.

ITC stock was trading at Rs 372.35 a piece, up 0.7 points (or 0.19 per cent) on Bombay Stock Exchange at 12:50 pm.

Shares of other cigarette companies also gained, with Godfrey Phillips India rising 1.1 per cent and VST Industries up 0.32 per cent.

GST will subsume most of the indirect taxes like excise duty and service tax at the Central level and value-added tax and local levies on the states front.

The amendment for the implementation of the new tax regime will be introduced in the ongoing session of parliament concluding next week. Enditem