ITC, VST, Godfrey jump as GST Panel sets tobacco rate at 65%

Tobacco companies like ITC, VST and Godfrey Phillips jumped between 4 to 5% on Friday after GST panel suggested a tax rate of 65% on Thursday evening. 

Finance Minister Arun Jaitley led GST panel yesterday fixed the rate structure, under which they stated that tobacco will be taxed at 65% rate.

ITC was top gainer on BSE, trading at Rs 254.15 per share up by Rs 14 or 5.74%.

VST Industries rose over Rs 114.90 per share or 4.98% trading at Rs 2420.

Godfrey Phillips India jumped over Rs 37 per share or 2.65% trading at Rs 1439.35.

Shares of Golden Tobacco were trading at Rs 62.80 above Rs 4.50 or 7.72%.

Tobacco industry has been the second largest contributor to Indian excise revenue  after the oil and gas sector, as per Assocham.

GST bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was passed by the Lok Sabha on 8 August 2016.