Cigarette stocks hit hard on GST panel suggestion; ITC down 6%

Cigarette stocks witnessed heavy selling pressure today, falling as much as six per cent, after a GST panel suggested 40 per cent tax rate for demerit goods like pan masala and tobacco.
Shares of ITC tumbled 5.67 per cent to Rs 316.55 on BSE, emerging as the worst performer among the blue-chip Sensex stocks.
Similar selling was seen in Godfrey Phillips which plunged 5.7 per cent and VST Industries, that dipped 4.21 per cent.
A Finance Ministry panel headed by CEA Arvind Subramanian has suggested a 'standard rate' of 17-18 per cent on bulk of the goods and services for the entire country.

The government plans to roll out Goods and Services Tax (GST) from April 1.