Shares of ITC, Varun Beverages, and VST Industries rise on proposed 35% GST rate

Shares of ITC, Varun Beverages, and VST Industries are in focus following reports of a proposed 35% GST rate on aerated drinks and tobacco products. This rate would be in addition to the current GST structure of 5%, 12%, 18%, and 28%. Cigarettes significantly contribute to ITC's revenue, accounting for nearly 40% of its topline in the September quarter. Currently, cigarettes face a 28% GST plus a compensation cess that varies from 5% to 36%. On Monday, ITC shares closed at ₹477.4, Varun Beverages at ₹631.8, VST Industries at ₹325.95, and Godfrey Phillips at ₹5,750, with slight gains for Varun, VST, and Godfrey Phillips.