Delta Corp Shares Tank; Varun Beverages Declines

New Delhi, Sep 4 (PTI) Shares of Delta Corp tumbled over 8 per cent on Thursday as 40 per cent tax will be levied on services by a race club, leasing or rental services, and casinos/gambling/horse racing/lottery/online money gaming.

The stock tanked 8.33 per cent to settle at Rs 87.30 on the BSE. Shares of Nazara Technologies also dropped 2.26 per cent to Rs 1,106.95.

Meanwhile, shares of Varun Beverages declined 2.81 per cent to Rs 490.95.

"Varun Beverages fell 3% after the GST Council raised taxes on carbonated drinks to 40% from the earlier 28%, sparking concerns for the beverage sector," Hariprasad K, Research Analyst and Founder - Livelong Wealth, said.

Popular soft drinks, such as Coca-Cola and Pepsi, along with other non-alcoholic beverages, will become costlier, with the GST Council on Wednesday approving a hike in tax rate on carbonated beverages to 40 per cent from 28 per cent at present.

As part of the reforms of the Goods and Services Tax (GST), the council increased the rate on carbonated beverages of fruit drink or carbonated beverages with fruit juice to 40 per cent from 28 per cent.

The council also hiked the GST rate on caffeinated beverages to 40 per cent from 28 per cent.

The panel approved simplifying the GST from the current four slabs - 5, 12, 18 and 28 per cent, to a two-rate structure - 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The 40 per cent tax will also be levied on services by a race club, leasing or rental services, and casinos/gambling/horse racing/lottery/online money gaming.