US President trump has imposed reciprocal tariffs on various countries including India which is bound to disrupt global trade. The tariff imposed on India is @ 27%. This may hit various sectors such as textile, automobile, electronics, jewelery etc. RBI feels that the reciprocal tariffs imposed by the US will negatively affect domestic growth, but the impact on India will be far less severe than in many other countries.
Asian Development Bank (ADB) has lowered India’s GDP forecast for FY 2025-26 from 7% to 6.7% in its latest report as a major risk arises from US Tariff levies on India’s exports which could reduce trade and investment flows and potentially create volatility in the domestic financial market. Tariffs cast a shadow on growth prospects. Other growth forecasts also range between 5.9 and 6.7%.
IMF has now cut India’s growth forecast for FY 2025-26 to 6.2% by 30 basis points, while maintaining stable outlook. This is supported by private consumption in rural areas and takes into account recent tariff impact. World Bank has also lowered India’s growth forecast for FY 2026 to 6.3% from 6.7% due to global economic weakness. RBI has already projected the same but rules out any slippages. It is likely to grow at 6.5% in 2025-26 supported by strong domestic consumption and investment demand despite global uncertainties.
The Government has notified procedure and Rules for functioning of GST Appellate Tribunal. These have come into force w.e.f. 24th April, 2025. It will be mandatory to file all appeals online via the GSTAT portal with certified copy of the impugned order. These rules provide for procedure to file appeal, how hearings will take place, orders, forms etc. These rules also prescribe fees for filing appeals and other filings, affidavits, evidence etc. It contains 15 Chapters, 124 Rules and 8 Forms. It prescribes definitions such as of appellate Tribunal, authorized representative, bench, certified copy, GSTAT portal, member, party, principal bench, interlocutory application etc.
CBIC has issued new instructions or guidelines for processing of applications for registration under GST law. This would facilitate ease of doing business, are more transparent and aimed to reduce compliance burden. These instructions shall be in suppression of earlier guidelines dated 14.06.2023.
MoF has clarified that it does not intend to levy GST on UPI transactions of Rs. 2000 or above, as is being reported in media. It has termed such claim as false, misleading and without any basis. It states that since currently there is no MDR (Merchant Discount Rate) on UPI transaction, there is consequently no GST levied. Also, it has clarified or taxability of transactions between RWA’s and flat owners.
Kerala High Court has recently (11.04.2025) upheld in Indian Medical Association v. Union of India case in relation to non-levy of GST in case of clubs or association on the concept of mutuality. It has struck down Section 7(1) (aa) and Section 2(17)(e) of CGST/KGST Acts, 2017 as unconstitutional. These provisions amended in 2021 w.r.e.f. 01.07.2017 deemed associations and members as separate entities and transactions between them as supply for the purpose of GST. The court held that transaction between an association and its members cannot constitute a supply as they are essentially the same entity on the doctrine of mutuality. Supply requires two distinct persons – a provider and a recipient and that constitutional interpretation by Supreme Court in State of West Bengal and Calcutta Club in 2019 is binding.
GSTN has issued advisories on case insensitivity in IRN generation to align with the treatment of invoice numbers in GSTR-1 return. This would apply w.e.f. 1st June, 2025 and Table-12 of GSTR-1 / GSTR-1A. GSTN has also issued an advisory on reporting of HSN codes in Table 12 and list of documents in table 13 of GSTR-1/1A. Accordingly, Phase-3 of reporting of HSN codes in Table 12 of GSTR-1 & 1A shall be implemented from May 2025 return period. Further, table 13 of GSTR-1/1A has also been made mandatory for the taxpayers from the said tax period.
GST collection figures for April, 2025 are out. Gross domestic revenue is Rs. 1,89,803 crore showing a growth of 10.7% on YoY basis whereas total gross GST revenue is Rs.2,36,716 crore showing a growth of 12.6%. During April 2025, refunds have been Rs. 27,341 crore showing a rise of 48.3% on YoY basis. The growth in GST collection @ 12.6% is the fastest in last 17 months. Tax collection from imports saw a jump of over 20%. This boost in tax revenue to cross Rs. 2 lakh crore bench-mark is after a gap of 12 months which is indicative of resilience of Indian economy and effectiveness of cooperative federation. GST is indeed driving the nation’s progress.
Author Bio
