After GST Council’s decision to increase the cess on cigarettes, ITC has registered 11% decrease in its shares. Due to this unprecedented decrease of shares, ITC has lost more than 45,000 Crore in its market cap which means investors have had loss of the same amount!
Due to this huge loss registered by ITC, its biggest shareholder LIC has to lose a huge amount of money from its bag. According to the reliable sources, LIC holds around 16.7% of the ITC shares as a prime shareholder and due to the same LIC has registered more than 7,000 Crores loss in merely 30 mins. Other insurance companies also have lost nearly 10,000 Crores collectively!
GST has been applied throughout the India since 1st July, however in the recent GST council meeting, the committee decided to increase the surcharge on cigarettes and due to this decision, cigarettes won’t be cheaper after GST. After the meeting held in presence of Finance Ministers of all the states of India, central Finance Minister Arun Jaitley announced this increase.