ITC Share Crash: Stock hits lower circuit after excise duty hike on cigarettes plunges 10%:On Wednesday, ITC shares were trading down 10% at ₹365, which is the same level as in March 2024

News Topical, Digital Desk : ITC Share Crash: On January 1, 2026, ITC Limited shares fell to a nearly two-year low. This decline was due to the government's increase in excise duty on cigarettes and other products and a block deal entered into that day. The decline was so severe that the stock entered a lower circuit. The stock is trading at 365 within the circuit.

40% GST and changes in the tax structure

The Ministry of Finance has issued a notification stating that 40% GST will be applicable on tobacco, cigarettes, and bidis from February 1, 2026. This includes a 28% tax, and excise and NCCD will be included in the GST. However, it remains to be clarified whether additional cess or duty will be imposed. What will be the total tax burden after the new system?

Heavy trading in block deals: Over 40 million ITC shares were traded in block deals in the morning session on the stock market, representing approximately 0.3% of the company's total shares. The average transaction price was ₹400 per share, leading to a total transaction value of ₹1,614.5 crore.

Stock Market Performance On Wednesday, ITC shares were trading down 10% at ₹365, which is the same level as in March 2024. The stock fell 12% in 2025, showing a negative annualized return for the first time since 2020. This decline is the biggest single-day fall in the last eight months.

Heavy Trading Volumes More than 6 crore shares were traded in the first 30 minutes of market opening on Thursday, which is much higher than the company's 20-day average of 6 lakh shares.