Indian cigarette firms unlikely to benefit from GST overhaul; slip in upbeat market

ITC

18/08/2025 07:40

** Indian cigarette makers down between 0.5% to 5% in a market propelled higher by sweeping changes proposed to the nation's goods and services tax regime

** Items such as cigarettes, high-end cars currently attract higher levies in addition to the 28% GST rate, which the government has proposed to abolish

** Analysts at Citi say tobacco could potentially be at risk for tax increases under the revamped GST structure

** On the day, Godfrey Phillips GDFR.NS down  about 5% to 9660 rupees

** Co gets nearly allits revenue from cigarettes, tobacco, and related products

** Diversified conglomerate ITC ITC.NS, for which cigarettes make up about 40% of revenue, down 0.7%, while smaller tobacco co VST Industries VSTI.NS down 0.6%

** On the day, benchmark Nifty 50 .NSEI index up 1.3%, led by gains across auto, consumption and insurance stocks which are set to benefit from tax regime overhaul .BO

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))