GST Shake-Up: Delta Corp and Beverage Stocks Plummet Amidst Tax Hikes
Delta Corp shares fell over 8% as a new 40% tax is applied to various services including casinos and race clubs. Varun Beverages and other companies face similar declines due to a GST increase on carbonated drinks from 28% to 40%, affecting the beverage industry's pricing dynamics.
- Country:
- India
Shares of Delta Corp dropped significantly by over 8% following new tax reforms that impose a 40% levy on services like those provided by casinos and race clubs. The subsequent market reaction saw Delta's stock closing at Rs 87.30, demonstrating investor concern over these fiscal changes.
The GST Council's decision extends beyond Delta Corp, impacting Nazara Technologies and Varun Beverages, whose shares fell by 2.26% and 2.81%, respectively. The adjustments particularly affect the beverage sector, with popular brands like Coca-Cola and Pepsi set for price hikes due to increased taxation from 28% to 40% on carbonated drinks.
This taxation overhaul is part of broader reforms aiming to simplify India's GST structure from four to two slabs, but with a 40% special tax slab for select items. The financial reverberations among affected industries underscore the strategic impact of these tax changes on market dynamics.
(With inputs from agencies.)
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