ITC raises Classic Connect and Gold Flake Super Star cigarette MRPs after 40% GST
Dealer checks indicate ITC has increased cigarette MRPs following the introduction of 40% GST. Classic Connect’s 20-cigarette pack rose from ₹390 to ₹428, while Gold Flake Super Star’s 10-pack increased from ₹79 to ₹89.
What happened
ITC Limited · ITC has raised MRPs for cigarette brands including Classic Connect and Gold Flake Super Star following a 40% GST introduction. Dealer checks show
Key facts
- Classic Connect 20-cigarette pack MRP increased from ₹390 to ₹428
- Gold Flake Super Star 10-cigarette pack MRP increased from ₹79 to ₹89
- 40% GST became applicable from February 1
Why this matters
ITC’s ability to raise cigarette MRPs quickly reinforces the strategic value of its premium tobacco portfolio, though sustained tax-driven pricing may widen the opening for value brands and illicit trade.
What to watch
- Monthly cigarette volume trends at distributors and key retail channels after old-MRP inventory clears.
- Further MRP revisions across ITC's Gold Flake, Wills, Navy Cut and value-brand portfolios.
- Pricing actions by Godfrey Phillips India, VST Industries and other organized tobacco players.
- Evidence of accelerated downtrading, loose-cigarette purchases, or illicit-cigarette availability.
- Government enforcement activity against illicit tobacco and any clarification on GST/pass-through treatment.
- ITC is likely to selectively reprice additional cigarette SKUs and calibrate pack-price points rather than apply uniform increases across the portfolio.
- Retailers may increase focus on lower-ticket packs and value brands to protect cigarette footfall and basket conversion.
- Competitors are likely to follow with staggered MRP hikes, using relative price gaps to defend brand positioning.
- ITC may emphasize mix, distribution, and premiumization in investor communication if cigarette volumes soften after the hike.