shares surged 1.53 per cent to ₹418.05 in morning trade on September 4, 2025, following Finance Minister Nirmala Sitharaman’s announcement that cigarettes and tobacco products will continue at existing GST rates despite the broader tax restructuring.
The stock opened at ₹423.95 against the previous close of ₹411.75 and touched a high of ₹427.00 during early trading hours. Trading volumes reached 146.02 lakh shares worth ₹613.74 crore by 10:15 AM, with 66.24 per cent of traded quantity being deliverable trades.
The 56th GST Council meeting on Wednesday approved a complete overhaul of the tax structure, simplifying the current four-slab system to just two rates of 5 per cent and 18 per cent, effective September 22. However, tobacco products, cigarettes, and gutkha will maintain the current 28 per cent GST plus compensation cess until loans taken to compensate states for revenue losses are fully repaid.
Other tobacco stocks including Godfrey Phillips India and VST Industries are also expected to benefit from the unchanged tax structure. ITC’s market capitalisation stands at ₹5,23,739.78 crore with the stock trading near its 52-week range of ₹390.15-₹528.50.