Archive · 5 Sep 2025
GST Council Hikes Taxes on Beverages, Affecting Stocks
The government is changing how taxes work on some products.
They decided to raise taxes on fizzy drinks and caffeinated beverages to 40%.
This will make drinks like Coca-Cola and Pepsi more expensive.
As a result of this news, the stock prices of companies that make or sell these drinks, like Varun Beverages and Delta Corp, went down.
The tax system is also being simplified into fewer tax rates, with a higher rate for luxury items and certain services.
GST Council approved a tax hike on carbonated and caffeinated beverages.
Tax rate on carbonated beverages increased to 40% from 28%.
Shares of Varun Beverages fell 4% on Friday.
Shares of Delta Corp dropped nearly 3%.
The GST system is being simplified with new tax slabs.
- Who
- GST Council, Varun Beverages, Delta Corp
- What
- Approved tax hikes on beverages and services
- When
- Announced Wednesday, impacts reflected on Friday
- Where
- Not explicitly stated in articles
- Why
- Part of GST reforms
- GST Council Decision
- Increased tax on carbonated and caffeinated beverages
- Tax Rate on Beverages
- Increased to 40% from 28%
- Companies Affected
- Varun Beverages, Delta Corp
- Varun Beverages Stock Drop
- Fell 4% on Friday
- Delta Corp Stock Drop
- Fell nearly 3%
- GST Slab Changes
- Simplified to 5%, 18%, and 40% for select items
Sources
Labelled ‘sin goods’ under GST, Goa’s casinos warn of threat to ‘thousands of jobs’
Piyush Goyal says ‘everyone will get benefits of GST reforms before Navratri’, calls initiative ‘most transformative’
Knowledge Nugget: What is GST Council? Key decisions of 56th meeting for UPSC Exam
