Tobacco & Gaming Stocks Under Spotlight as GST 2.0 Looms!

The government is preparing to roll out a new GST 2.0 plan aimed at simplifying India’s tax system. Instead of multiple slabs (5%, 12%, 18%, 28% + cess), most goods will now fall into just two rates — 5% and 18%. But for “sin goods” like tobacco and online gaming, the highest slab of 40% will continue. Currently, cigarettes face a massive 48–55% tax burden through a mix of GST, cess, and excise duties. On paper, the new plan proposes a flat 40% GST slab for such goods. However, experts believe that the government is unlikely to lower the effective tax on these products, meaning the burden will stay neutral or even slightly higher. This is a key development for markets. Tobacco stocks such as ITC, Godfrey Phillips, and VST Industries, along with gaming companies like Nazara Tech and Delta Corp, will remain in focus as investors weigh the impact. In short, GST 2.0 may make taxes simpler for most industries, but for tobacco and gaming, high taxes are here to stay.