Cigarette shares surge over seven percent following GST Council tax cap

The GST Council had yesterday decided that the cess on tobacco products will be capped at a combination of Rs 4,170 per 1,000 sticks or ad valorem of 290 per cent in the new indirect tax regime.

Image used for representational purpose only. (File photo | AP)

NEW DELHI: Shares of cigarette makers jumped over 7 per cent  on the bourses today following GST Council's decision to cap the cess on tobacco.     

VST Industries gained 7.55 per cent to settle at Rs 2,839.45 on BSE. It jumped 7.70 per cent on NSE to end at Rs 2,839.50. On BSE, ITC shares closed at Rs 281.20, up 4.85 per cent from the previous close. On NSE, the scrip settled at Rs 280.25, up 4.40 per cent.

Intra-day, ITC shares surged 7.75 per cent to touch Rs 289 on BSE. At NSE, it soared 7.61 per cent to hit 288.90. The stock of Godfrey Phillips gained 1.04 per cent on BSE and closed at Rs 1,298.50.

On NSE, it ended at Rs 1,299, up 1.16 per cent from the previous close. However, Golden Tobacco ended at Rs 78.20, down 1.45 per cent from the previous close on BSE. On NSE, it slipped 1.77 per cent to close at Rs 77.55.     

The GST Council, headed by Finance Minister Arun Jaitley and comprising state representatives, yesterday decided that the cess on tobacco products will be capped at a combination of Rs 4,170 per 1,000 sticks or ad valorem of 290 per cent in the new indirect tax regime that is scheduled to roll out from July 1.