Fitch forecasts india gdp growth: Fitch Ratings have retained India’s credibility on ‘BBB-‘ with a stable landscape with a growth rate and strong financial position on the external front. The 50% US fee proposed on India is expected to have a slight negative impact on the 6.5 percent growth rate of its GDP (GDP) for the current financial year 2025-26. Fitch said, “If the proposed goods and service tax (GST) reforms are adopted, it will promote consumption and reduce some risks related to increase.”

The Center has proposed a rate of 40 percent for five to seven items as well as a second for five to seven items along with a bila-level tax structure of five and 18 percent for goods and services for the ministers set up on rationalization of GST rates. This proposal includes abolition of the existing 12 and 28 percent tax ‘slab’.

US agency seal on India’s growth

Fitch said, “India’s rating has its strong growth and solid external financial status.” BBB-“is the lowest investment category rating. This rating has come within a fortnight of ‘BBB’ by increasing India’s credit rating by the global rating agency S&P. It is worth noting that on August 14, S&P Global Ratings increased India’s credibility from ‘BBB-‘ to ‘BBB’. S&P has increased India’s credibility for the first time in 18 years.

Another global rating agency Morning DBRS had increased India’s rating to ‘BBB’ in May this year citing structural reforms. The agency has estimated to be 6.5 percent of the growth rate of GDP (GDP) in FY 2025-26, which is similar to the financial year 2024-25 and is above the average ‘BBB’ of 2.5 percent. It said that India’s economic scenario remains stronger than equivalent countries, although its pace has slowed down in the last two years.

Tariff will not affect

The agency said that it has estimated a growing capacity of 6.4 percent in the moderate period due to strong public capital expenditure, increase in private investment and favorable demographics. Fitch said, “If the proposed Goods and Services Tax (GST) reforms are adopted, it will boost consumption and reduce some risks related to growth.” The rating agency, however, has expressed concern over the fiscal front, citing high deficit and debt compared to the countries of the ‘BBB’ category.

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GST on UPI transactions: UPI transactions, becoming increasingly popular in the country, are proving to be a milestone towards promoting the government’s digital India campaign. Amid reports of recent GST on UPI, the Finance Ministry has clarified in the Rajya Sabha that no idea has been made to impose GST on transactions of more than 2000 rupees. During the monsoon session on July 22, Minister of State for Finance Pankaj Chaudhary said that it has not been recommended to impose GST on transactions above two thousand rupees.

GST will not be imposed on UPI transaction

Responding to a question of the government’s views about GST on transactions above two thousand rupees, Pankaj Chaudhary said that on the basis of GST Council’s recommendation, GST rates and exemption are decided. It is a constitutional body, which includes members of both the state and the center.

Significantly, the GST case on UPI transactions came to light when about 6000 GST notice has been issued to traders on the basis of data of UPI transactions in Karnataka.

GST notice in Karnataka stirred up

The organization of traders in Karnataka has threatened to strike against the GST notice sent on the basis of data of GST transactions. While the Income Tax officials have described it as the right step according to the law.

Speaking to the news agency PTI, Joint Commissioner of Commercial Tax, Meera Suresh Pandit said that when the transaction limit in the service sector crosses the limit of 20 lakhs and goods for goods, it becomes mandatory to register its business under the GST Act. Along with this, your turnover also has to be announced