RBI may cut the repo rate by 25 bps as inflation stays subdued despite strong GDP growth.
The Monetary Policy Committee meeting on December 3-5, 2025 will decide the repo rate; subdued CPI inflation below the 2 percent lower bound and muted core inflation have given room for a potential 25 basis point cut after cumulative easing to 5.5 percent, while contrasting views cite robust GDP growth, fiscal consolidation and GST rationalisation as reasons to maintain the policy rate and a neutral stance.

Cross LoC trade treated as intra state trade under GST; parties must now pursue CGST statutory remedies.
Cross LoC trade is treated as intra state trade under the GST Act because Pakistan Occupied Kashmir territories are regarded as part of the erstwhile State of Jammu & Kashmir, so suppliers' locations and places of supply fell within the then State; parties receiving show cause notices challenging territorial and supply classification are to avail statutory remedies under the CGST Act, 2017. Claims that transactions were barter or zero rated were asserted but did not change the territorial GST character.

Indian economy projected to exceed 7% growth and cross USD 4 trillion; GST and tax reforms boost demand.
Real GDP growth is forecast to exceed 7 per cent in FY26 and the economy to cross USD 4 trillion, supported by an 8.2 per cent Q2 outturn and robust H1 performance. Demand is bolstered by resilient rural consumption and improved urban demand following tax changes. Policy measures - including GST rate rationalisation, the new Personal Income Tax regime, Labour Codes, and deregulation initiatives - are said to raise household disposable incomes, strengthen consumption, and enhance efficiency to support private investment and public capex.

India's economy grew 8.2% in Q2, driven by GST-led consumption, investment and manufacturing despite tariff headwinds.
India's real GDP rose 8.2% in July-September, propelled by GST-related front loading, stronger private consumption, higher manufacturing and targeted public investment, with low inflation and base effects supporting the expansion; the punitive tariff increase on exports was not fully reflected. The nominal GDP print remained modest, and authorities warned that rebasing national accounts to 2022-23 and methodological updates will prompt revisions to future quarterly estimates.

India GDP grew 8.2% in Q2; GST rate cut boosted manufacturing and shaped monetary and fiscal outlooks.
India's real GDP grew 8.2% in Q2 FY2026 driven by manufacturing and services, aided by a GST rate cut that stimulated factory output; however, agriculture decelerated, GDP estimation discrepancies widened, and a lower GDP deflator has compressed nominal growth, complicating fiscal deficit metrics and influencing monetary-policy prospects.

Vyapar acquires Suvit to integrate AI accounting and enhance GST automation and tax compliance for MSMEs.
Vyapar has acquired Suvit to integrate Suvit's AI-led pre-accounting automation and GST reconciliation into Vyapar's billing, accounting and practice-management platform, aiming to provide end-to-end workflows from invoicing to tax filing, enhance GST automation and real-time error detection, and improve compliance accuracy and operational efficiency for MSMEs and tax professionals.

Paisabazaar offers Udyam and GST registration and filing services at retail stores for self-employed small businesses.
Paisabazaar launched in-store Udyam registration, GST registration and GST filing services with trained staff providing documentation assistance, credit-product guidance, free credit score checks, and Aadhaar registration, initially at outlets in Gurugram, Noida and New Delhi, with plans to expand to Tier-2 and Tier-3 markets.

GST rate rationalisation cut prices on daily goods, boosting consumption and easing retail inflation to 0.25%.
The GST rate rationalisation-cutting rates on roughly 375 items and consolidating slabs into mainly 5% and 18%-has reduced prices of daily-use goods and measurably boosted consumption, contributing to a decline in retail inflation to 0.25% in October; the report links higher high frequency demand indicators to this policy, while noting that the full impact on spending will emerge over the next two quarters.

GST registration cancellations: court requires reasoned orders, opportunity to remedy, and administrative penalties for officers.
The High Court set aside a retrospective cancellation of GST registration where the officer failed to give reasons and denied an adequate opportunity to rectify alleged wrongful availing and passing on of input tax credit, directing the tax administration to mandate reasoned orders and penalise officers who issue non speaking cancellations.

India's economy: GST reform expected to cushion impact of 50% US tariffs while growth remains robust.
The IMF projects continued robust GDP growth and states that the Goods and Services Tax reform, through an effective rate reduction, is likely to cushion India from the adverse impact of prolonged 50 percent US tariffs; it calls for fiscal consolidation with disciplined spending, targeted and time bound tariff relief, domestic revenue mobilisation, and structural reforms alongside monetary flexibility and measures to bolster financial sector resilience.

India's economy projected to grow on consumption from tax relief, GST cuts and lower interest rates amid US tariff risks.
S&P Global Ratings projects India's GDP growth at 6.5% in FY2026 and 6.7% in FY2027, with consumption becoming the primary growth driver due to income tax relief, reduced GST rates on about 375 mass-consumption items, and a 50-basis-point central bank rate cut; elevated US tariffs on Indian goods are a downside risk to export-oriented manufacturing and labour-intensive sectors, while a trade agreement or tariff reductions would reduce uncertainty and bolster confidence.

GST requires taxpayers to submit bank account details under Rule 10A within 30 days or before GSTR 1/IFF filing via non core amendment.
Under Rule 10A, taxpayers (except TCS, TDS, or suo moto registrants) must furnish bank account details within 30 days of registration or before filing outward supplies in GSTR 1 or IFF, whichever is earlier. The GST portal will implement changes to operationalize the requirement; taxpayers should add accounts via Services > Registration > Amendment of Registration Non Core Fields to avoid suspension of GST Registration and business disruption.

GST rate cut on batteries passed to consumers; manufacturer plans lithium cell production and EPR compliance.
Exide plans lithium ion cell production by end FY26, starting with an NCM cylindrical line for two wheelers and a prismatic LFP line for stationary storage. It targets utilisation ramp to 60% then 90%, expects margins at steady 80-90% utilisation to match lead acid margins, and will price using a mix of import parity and cost plus. The company passed the GST reduction on batteries to consumers and has made Q2 provisions to meet EPR obligations under new battery waste rules, anticipating these costs to recur and be reflected in pricing.

GST litigation management modernized by AI-enabled platform improving automation, centralized records, and multi-jurisdictional case visibility.
AI-enabled GST litigation management platform centralizes case administration and document storage, automates workflows with timed alerts, and provides multi-jurisdictional case tracking and analytics to improve coordination, reduce manual errors, and supply data-driven insights for strategic decision-making in dispute handling.

GST fraud: Enforcement uncovers fake invoice network enabling fraudulent input tax credit claims and arrests follow.
Enforcement action targeted a fake invoice racket that used more than fifty suspicious GST registrations and non existent firms to generate invoices without actual supply, enabling fraudulent claims of input tax credit. Two key operatives were located, searched, and interrogated, admitted procuring registrations and producing fake invoices for monetary gain, and were arrested; initial investigation into two firms disclosed significant GST evasion and further revenue loss is expected as enquiries continue.

Next Gen GST reforms promote digital taxpayer facilitation and public outreach through a pavilion with helpdesks and multilingual education.
The CBIC inaugurated a GST & Customs Pavilion to operationalise Next Gen GST reforms-Structural Reforms, Rate Rationalisation, and Ease of Living-by providing digital demonstrations, multilingual educational content, and expert helpdesks offering real time assistance on registration, refunds, return filing, grievance redressal and export import procedures; the Pavilion also promotes taxpayer vigilance against identity fraud, public engagement activities, and youth career orientation to advance taxpayer facilitation and trade related service delivery.

Exide Industries saw profit fall after GST rate cuts on batteries prompted channel de stocking and muted quarterly demand.
The GST 2.0 reduction of battery tax from 28% to 18% produced channel de stocking and muted trade demand, leading the company to report a 26% YoY decline in consolidated quarterly net profit to Rs 173.64 crore and a 1.9% drop in quarterly revenue to Rs 4,364.51 crore; management highlighted the reform as demand supportive, confirmed zero debt, and stated that construction of a lithium ion cell plant is progressing with commercial operations expected toward year end.

WPI inflation dropped to -1.21% in October after GST rate cuts and base effects, pressuring monetary easing plans.
WPI fell to (-)1.21% in October 2025 due to deflation in food articles, lower fuel and manufactured goods prices, and a favourable base. The drop is linked to the September 22 GST rate rationalisation that reduced slabs to 5% and 18%, which, together with base effects, pulled down wholesale and retail inflation and may prompt the central bank to consider a 25-50 basis point repo rate cut.

WPI inflation falls to -1.21% after GST rate cuts, creating pressure for monetary policy easing.
Cuts to Goods and Services Tax rates under a tax rate rationalisation that consolidated slabs to 5% and 18% lowered prices and, with a favourable base effect, drove wholesale price inflation down to -1.21% in October; the decline spanned food articles, fuel and power, and manufactured products and is cited as a key factor increasing pressure on monetary authorities to consider interest rate easing.

GST Input Tax Credit fraud leads to arrest and seizure after probe exposing fake firms and laundering links.
DGGI Delhi uncovered a network of 229 GST-registered dummy firms issuing invoices without actual supply to fraudulently avail and circulate Input Tax Credit; searches recovered phones, digital signatures and banking records evidencing manipulation of registrations, returns and layered transactions. A key operator was arrested and remanded to judicial custody as the offences are treated as cognizable and non-bailable, and the inquiry has revealed possible money-laundering through an NGO and a political outfit, with further investigation ongoing.