Tobacco Stocks Gain After GST Move

Tobacco stocks rallied 1–4% on September 4 after FM announced a 40% GST rate on cigarettes, paan masala, gutka, and related products, replacing the current 28% GST plus cess. Brokerages see the change as neutral-to-positive, with possible lower tax incidence if no new levies are imposed, potentially boosting competitiveness against illicit trade.