New Delhi, Dec 3 (PTI) Shares of ITC, VST Industries and Varun Beverages declined in morning trade on Tuesday after the GoM (Group of Ministers) on GST rate rationalisation decided to hike tax on sin goods like aerated beverages, cigarettes, tobacco and related products to 35 per cent from the present 28 per cent.
The stock of ITC went lower by 3 per cent to Rs 462.80 on the BSE.
VST Industries' stock dipped 2.27 per cent to Rs 318.30.
Shares of Varun Beverages tumbled 5.18 per cent to Rs 600.
The GoM report is expected to be discussed by the GST Council -- chaired by Union Finance Minister and comprising her state counterparts -- on December 21. A final decision on GST rate changes will be taken by the council.
"The GoM has agreed to propose a special rate of 35 per cent on tobacco and related products and aerated beverages. The four-tier tax slab of 5, 12, 18, and 28 per cent will continue and a new rate of 35 per cent is proposed by the GoM," an official said.
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