Shares of tobacco companies such as ITC Ltd and VST Industries Ltd, along with gaming firms like Nazara Technologies Ltd and Delta Corp Ltd, fell around 1.5% on 18th August. The decline came after reports suggested that the Centre is considering a 40% GST slab on ‘sin goods,’ triggering some selling in these stocks.

In the proposed GST 2.0 framework, the government has suggested replacing the current multi-slab system with a simpler two-rate structure of 5% and 18%, while keeping a higher 40% levy on certain specified sin or demerit goods.

These select goods, which also include online gaming, would continue to face the maximum GST rate of 40% allowed under the current rules.

Currently, cigarettes remain among the most heavily taxed items in India, with the total tax burden accounting for approximately 48–55% of the maximum retail price (MRP). This burden is spread across different tax components.

At 11:43 AM, ITC Ltd was trading 0.72% lower at Rs 408.50, VST Industries slipped 0.62% to Rs 270.90, while Nazara Technologies fell 1.60% to Rs 1,392 on NSE.

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