ITC Nosedives After Hike In Compensation Cess


ITC stock witnessed a whopping dip of 12.95% at Rs 283.55 per share on BSE as the GST Council on Monday has hiked the compensation cess on cigarettes to ensure that the effective tax rate does not reduce under GST.

Despite falling in the 28% GST rate and 5% ad valorem on cigarettes, the additional cess will change as per the length of the cigarettes.

The government will gain Rs 5,000 crore from the higher cess and there won't remain much difference between the pre and post-GST price for cigarettes.

Shares of ITC lost over Rs 45,000 crore in market capitalisation on Monday and witnessed its biggest intraday decline in five years

Meanwhile, on NSE, the stock witnessed a traded volume of 6,73,06,070  shares and a traded value of Rs 1,90, 099.26.

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