The cigarette maker, ITC, saw its shares decline 3 per cent in the intra-day trade today, while aerated drinks maker, Varun Beverages, clocked a 5 per cent fall in the market

(Reuters) -Indian shares were little changed at the open on Tuesday as consumer stocks fell after a report of a likely tax hike on cigarettes, tobacco and aerated drinks, offsetting broad-based gains.

Varun Beverages share price plunged as much as 5.18%, ITC stock price declined 3%, Godfrey Phillips India shares declined as much as 3.16%, while VST Industries stock fell 2.27% during Tuesday’s trading.

Shares of Varun Beverages fell by 5.2% as the Group of Ministers proposed raising the GST rate on aerated drinks to 35%. This hike in taxes affects Varun Beverages significantly since most of its revenue comes from India’s aerated beverages segment.

Shares of ITC, Varun Beverages and Godfrey Phillips India ended lower on Tuesday after the Group of Ministers on GST rate rationalisation decided to hike tax on sin goods like aerated beverages, cigarettes,

The Group of Ministers on GST rate rationalisation has recommended to raise tax on aerated beverages to 35% from the current 28%.

Shares of ITC, VST Industries, and Varun Beverages declined after a GoM proposed a 35% GST on sin goods including aerated beverages, cigarettes, and tobacco products.

Shares of Varun Beverages Ltd. traded 3.39 per cent in Monday's trade at 09:59AM (IST). Around 68,668 shares changed hands on the counter. The scrip opened at Rs 624.95 and touched an intraday high and low of Rs 643.

Cigarettes is a significant contributor to ITC's overall topline and is one of the major businesses for the company aside of FMCG & other, Agri, Paper and Hotels.

Shares of ITC Ltd., Varun Beverages Ltd., VST Industries Ltd., and other companies linked to cigarettes and beverages dropped by up to 5%

Shares of Varun Beverages Ltd. gained 3.39 per cent to Rs 642.1 in Monday's trade as of 10:00AM (IST). The stock hit a high price of Rs 643.95 and low of Rs 622.25 during the session. The return on equity (ROE) for the stock stood at 29.