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SC seeks Centre's response on plea concerning GST concession on car purchase by persons with disabilities
GST
Dated:- 1-12-2025
PTI
New Delhi, Dec 1 (PTI) The Supreme Court on Monday sought responses from the Centre and others on a plea which said the authorities have effectively extinguished the concessional Goods and Services Tax benefits on the purchase of cars by persons with disabilities.
A bench of Justices Vikram Nath and Sandeep Mehta issued notices to the Centre and others, including the Goods and Services Tax (GST) Council, seeking their replies on the plea within four weeks.
“Issue notice, returnable within four weeks,” it said while hearing the plea filed by a 100 per cent visually-impaired man.
The plea, file

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ion of the concerned GST exemption certificate scheme.
The plea said concessionary tax treatment for cars for persons with disabilities originated in 1999 when the Ministry of Heavy Industries granted a reduced excise duty rate for cars driven by or meant for differently-abled persons, which was further liberalised in 2007.
It said that with the advent of the GST regime in 2017, the Ministry of Finance prescribed a concessional GST rate of 18 per cent for cars for differently-abled persons as against a higher rate for other cars, creating a distinct fiscal regime for such vehicles.
The plea said the petitioner had applied online in December 2024 for a GST concession certificate under the GST exemption certificate scheme for purchasing a

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Stock markets retreat from lifetime highs on profit-taking in financial, FMCG shares; Sensex slips 65 pts
GST
Dated:- 1-12-2025
PTI
Mumbai, Dec 1 (PTI) Benchmark stock indices Sensex and Nifty closed marginally lower after hitting their fresh all-time highs on Monday due to profit-taking at higher levels and foreign fund outflows.
The 30-share BSE Sensex pared early gains and closed 64.77 points or 0.08 per cent lower at 85,641.90. During the day, the benchmark jumped 452.35 points or 0.52 per cent to hit a record intra-day high of 86,159.02.
The 50-share NSE Nifty dipped 27.20 points or 0.10 per cent to settle at 26,175.75. During the day, it climbed 122.85 points or 0.46 per cent to hit a lifetime high of 26,325.80.
Mark

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ere among the gainers.
“After reaching a new high, the market moved into a range-bound phase as expectations of an RBI rate cut in December faded following better-than-expected Q2 GDP growth and a sharp depreciation of the rupee. Sentiment turned slightly cautious due to muted GST collections in November, driven by lower rates,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
“Markets surrendered early gains and pulled back sharply from record highs as profit-booking set in amid weak global cues and a cautious interest-rate outlook,” Vikram Kasat, Head Advisory, PL Capital, said.
The BSE midcap gauge dipped 0.19 per cent and smallcap index ended flat marginally up by 0.05 per cent.
Among sectoral indices, realty drop

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Gross GST collection rose at a slower pace of 0.7 per cent in November at Rs 1.70 lakh crore, as domestic revenues declined, according to the government data released on Monday.
In Asian markets, Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled in positive territory, while South Korea's Kospi and Japan's Nikkei 225 index ended lower.
Markets in Europe were trading lower. US markets ended higher on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,795.72 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,148.48 crore, according to exchange data.
Brent crude, the global oil benchmark, jumped 1.96 per cent to USD 63.60 per barrel.
On Friday, the S

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Lok Sabha passes Manipur Goods and Services Tax (Second Amendment) Bill
GST
Dated:- 1-12-2025
PTI
New Delhi, Dec 1 (PTI) The Lok Sabha on Monday passed the Manipur GST Bill to replace an Ordinance promulgated to implement the GST 2.0 reforms in the North-Eastern state, amid protests from the Opposition on the SIR issue.
The Lok Sabha passed The Manipur Goods and Services Tax (Second Amendment) Bill, 2025, after a brief discussion and a statement by Finance Minister Nirmala Sitharaman.
The statutory resolution, moved by RSP member N K Premachandra, disapproving of the Manipur Goods and Services Tax (Second Amendment) Ordinance, which was promulgated on October 7, 2025, was rejected by a voice vote as Opposition members protes

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per cent. A 40 per cent rate has been proposed on ultra-luxury items.
The new tax rates were implemented on September 22.
To give effect to the GST rate changes on goods and services, the state GST laws were required to be amended.
Sitharaman said the provisions of the Central Goods and Services Tax Act, 2017, were amended through sections 121 to 134 of the Finance Act, 2025 and similar amendments were required to be carried out in the Manipur Goods and Services Tax Act, 2017 at the earliest, as per the decision of the 56th GST Council, to avoid repugnancy with the said Central Act.
Sitharaman said since Manipur is currently under the President's rule, an Ordinance was promulgated on October 7, to implement the amendments. PTI SKU

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GST collection rises at slower pace of 0.7 pc to Rs 1.70 lakh cr in November
GST
Dated:- 1-12-2025
PTI
New Delhi, Dec 1 (PTI) Gross GST collection rose at a slower pace of 0.7 per cent in November at Rs 1.70 lakh crore, as domestic revenues declined, according to the government data released on Monday.
Gross Goods and Services Tax (GST) collection was over Rs 1.69 lakh crore in November 2024.
Gross domestic revenues declined 2.3 per cent to over Rs 1.24 lakh crore.
The decline

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Cross-LoC barter trade treated as intra-state supply, SCNs under Section 74 CGST upheld, statutory remedies under Sections 74(9) and 107
Case-Laws
GST
HC held that cross-LoC barter trade under the 2008 SOP constitutes intra-state supply within the then State of J&K and is amenable to CGST/J&K GST. The impugned SCNs were construed as prima facie issued under Section 74(1) CGST Act on grounds of suppression, found within limitation, and validly “bunched” for FY 2017-18 and 2018-19 given y

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Lok Sabha adjourns for the day; Bill on Manipur GST passed amid din
GST
Dated:- 1-12-2025
PTI
New Delhi, Dec 1 (PTI) Lok Sabha proceedings were adjourned for the day on Monday amid unrelenting protests by opposition parties demanding a debate on the Special Intensive Revision of electoral rolls.
Amid the uproar, a bill to implement amendments to the GST law in Manipur was passed after a brief discussion.
The Bill was introduced earlier in the day by Finance Minister Nirmala Sitharaman to replace an ordinance on the issue. The state is under President's rule, hence Parliament is using its powers to pass the legislation.
Before being adjourned for the day around 2.20 PM, the House saw two earlier adjournments during the Ques

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Writ remedy cannot bypass mandatory pre-deposit once appellate tribunal is functional; petitioner directed to statutory appeal
Case-Laws
GST
HC held that while writ jurisdiction may be invoked when a statutory appellate Tribunal is not constituted or functional, such recourse cannot be used to bypass mandatory pre-deposit or other statutory conditions. As the concerned Appellate Tribunal has since become functional and the limitation period for filing appeals stands extended in stages,

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Presumptions under Sections 132(4A) and 292C limited to IT Act, GST investigation notice upheld as valid
Case-Laws
GST
HC upheld the validity of the SCN issued under the CGST Act against the Petitioner at the stage of investigation, holding that presumptions under Sections 132(4A) and 292C of the IT Act are confined to IT Act proceedings and do not automatically extend to CGST proceedings. While such seized material cannot, by itself, create presumptions or constitute conclusive evidenc

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Fresh GST demand under Sections 73 and 161 treated as show cause; earlier order infructuous, petition dismissed, remand ordered
Case-Laws
GST
HC held that the challenge to the original order u/s 73 pursuant to DRC-01 dated 30.05.2024 was infructuous, as the earlier demand dated 24.08.2024 stood obliterated and substituted by a revised order dated 18.03.2025 under s.161, raising a fresh demand of Rs. 3,85,35,356/- on different grounds. Observing that the petitioner did not cooperate or r

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Unreasoned s.74(9) WBGST appellate order violating s.74(12) set aside under Art.226, matter remanded for fresh decision on agency role claim
Case-Laws
GST
HC set aside the appellate order passed under s.74(9) WBGST Act on the ground of non-application of mind and absence of reasons as mandated by s.74(12). The appellate authority had merely reiterated the adjudicating authority's order without dealing with the petitioner's specific contention that it acted only as agent and not as suppl

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GST Exemption for Hostel Rentals Under Entry 13 of Notification 9/2017 for Residential Dwelling Use
Case-Laws
GST
HC held that rent from leasing residential premises used as hostel accommodation for students, teachers and staff qualifies as “service by way of renting of residential dwelling for use as residence” under Entry 13 of Notification 9/2017, and is therefore exempt from GST. Relying on a prior Division Bench ruling on identical facts, HC concluded that such receipts are not exi

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Sitharaman introduces Manipur GST bill to replace Ordinance
GST
Dated:- 1-12-2025
PTI
New Delhi, Dec 1 (PTI) Finance Minister Nirmala Sitharaman on Monday introduced the Manipur GST bill to give effect to decisions taken at the 56th meeting of the GST Council.
The Manipur Goods and Services Tax (Second Amendment) Bill, 2025, will replace the Manipur Goods and Services Tax (Second Amendment) Ordinance, which was promulgated on October 7, 2025.
The 56th GST Council, comprising the

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Lok Sabha adjourns till 2 pm amid Opposition protests over SIR
GST
Dated:- 1-12-2025
PTI
New Delhi, Dec 1 (PTI) Lok Sabha proceedings were adjourned till 2 pm on Monday amid Opposition protests demanding a discussion on the Special Intensive Revision (SIR) of electoral rolls.
The first day of the Winter Session, which will have 15 sittings, saw two adjournments till 2 pm. The proceedings went on for around 12 minutes after the House reconvened at 12 noon following an earlier adjournment.
Several Opposition members trooped into the Well shouting slogans and protesting over SIR, as they have been demanding a debate on the issue.
During the 12 minutes of the Zero Hour, Finance Minister Nirmala Sitharaman introduced three bills b

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RBI may cut interest rate by 25 bps on Friday
GST
Dated:- 30-11-2025
PTI
Mumbai, Nov 30 (PTI) The RBI may trim the benchmark lending rate by 25 bps in its forthcoming monetary policy meeting, as inflationary pressures are subdued, though some experts believe the central bank is likely to keep the rate unchanged in the backdrop of better-than-expected GDP growth of 8.2 per cent in the second quarter.
The consumer price index (CPI) based headline retail inflation is ruling below the 2 per cent lower band mandated by the government for the last two months.
Some experts, however, believe that the RBI may continue with the pause on interest rates as economic growth has picked up, sustained by fiscal consolidation, targeted public investment, and various reforms, such as the GST rate cut.
The Monetary Policy Committee meeting is scheduled from December 3-5, 2025.
RBI Governor Sanjay Malhotra is scheduled to announce the decision of rate-setting panel on December 5.
The

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growth (in H2) and inflation expected to remain well below 4 per cent until Q3 FY27, we see that there may still be a chance of another 25bps rate cut at the upcoming policy,” it said.
A research report from the State Bank of India's economic research department said that with a strong GDP growth and minimal inflation, it is now for the RBI to communicate to the broader markets the rate trajectory in the MPC meeting this week, as well as continuing with the neutral stance.
On what the RBI's MPC may decide in the forthcoming policy, Madan Sabnavis, Chief Economist, Bank of Baroda said “it would be a close call on the repo rate. Given that monetary policy is forward-looking and inflation in Q4-FY26 and FY27 is likely to be in the 4 per cent plus region, yielding a real repo rate of 1-1.5 per cent, the policy rate appears to be at a fair level.
“Under these conditions, we do not think that there should be any change in the policy rate,” he said.
Dharmakirti Joshi, Chief Economist,

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and to avoid aggravating the immediate issue on resource mobilisation for banks, as a rate reduction could move retail resources away from the banking sector,” he said.
Aditi Nayar, Chief Economist, ICRA opined that with the Q2 FY2026 GDP growth exceeding 8 per cent, a rate cut in the December 2025 MPC review now appears unlikely, notwithstanding the series-low CPI inflation print for October 2025.
The government has mandated the RBI to ensure that retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, believed that with inflation hovering at record lows, the RBI unquestionably has the policy space to consider a 25-bps rate cut.
The housing and allied sectors, as well as the broader economy, are already benefiting from the GST rationalisation and the RBI's cumulative 100-bps rate cuts earlier this year, he said.
A further reduction at this juncture would undoubtedly strengthen the ongoin

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Tax demand beyond show-cause notice violates s.75(7) KGST Act; assessment set aside and case remanded
Case-Laws
GST
The HC held that the impugned assessment order confirming tax demand of Rs. 6,93,77,821/-, in excess of the sum of Rs. 2,49,63,816/- proposed in the show-cause notice, was contrary to s.75(7) KGST Act and violative of principles of natural justice. It observed that the authority could not travel beyond the quantification in the SCN and that the rectification application wa

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Appeal Dismissal for Alleged Amnesty Scheme Opt-In Quashed; Only Appellant May Withdraw, Matter Remanded for Fresh Hearing
Case-Laws
GST
The HC set aside the appellate authority's order dated 17 February 2025 dismissing the petitioner's appeal on the ground of the petitioner's alleged intent to avail an Amnesty Scheme. The HC held that, even if withdrawal of the appeal was a precondition to claim amnesty, only the petitioner could elect to withdraw; the appellate authority had no jurisd

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Seizure and Penalty Under Section 129 CGST Quashed for Mere Wrong PIN Code in E-Way Bill
Case-Laws
GST
HC examined seizure of goods and penalty imposed u/s 129 CGST Act on the ground that the tax invoice mentioned an incorrect PIN code for the “ship to” address in a bill-to-ship-to transaction from Gujarat to West Bengal. The HC noted that the consignee's address was otherwise correct, all prescribed documents accompanied the consignment, and no other discrepancy or irregularity was fou

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Ex parte DRC-07 order set aside; fresh CGST/KGST adjudication deferred pending SLP on Notifications 56/2023, 25/2023
Case-Laws
GST
HC entertained the writ petition challenging an ex parte adjudication order passed under DRC-07 and the vires of Notifications No.56/2023-CT and 25/2023 FD 20 CSL 2023 under the CGST/KGST Act, 2017. Observing that the validity of the impugned notifications is sub judice before the Apex Court in Special Leave to Appeal (C) No.4240/2025 and that such decision

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Petitioner society recognized as Government Entity under Clause (zfa) 13.10.2017 notification, securing full tax exemption relief
Case-Laws
GST
HC adjudicated that the petitioner-society qualifies as a “Government Entity” under Clause (zfa) of the 13.10.2017 notification, since it is controlled and substantially funded by the State and satisfies the statutory requirement of 90% or more participation by way of equity or control. Upon harmonious construction of the relevant notifications

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Writ Against Section 74 CGST Show Cause Notice Rejected; Taxpayer Directed To Reply Within 15 Days
Case-Laws
GST
HC examined the challenge to a SCN issued u/s 74 of the CGST Act for recovery of tax, interest and penalty, where the petitioner contended absence of allegations of fraud and non-fulfilment of statutory ingredients. HC reiterated that though writ jurisdiction under Art. 226 can be invoked even at the SCN stage, such interference is warranted only when the notice is shown to b

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Omission of Rule 96(10) CGST Rules Ends All Pending Actions, Benefits Assessees Under Section 16 IGST Act
Case-Laws
GST
HC held that, consequent to the omission of Rule 96(10) of the CGST Rules w.e.f. 08.10.2024 and its inconsistency with s.16 of the IGST Act, no proceedings can validly continue under the said rule. All pending SCNs, consequential orders and appeals founded on Rule 96(10) were held to be non-sustainable, as the omission must operate to the benefit of all assessees in on

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Cross-LoC trade constitutes intra-state trade, observes J-K High Court
GST
Dated:- 29-11-2025
PTI
Srinagar, Nov 28 (PTI) Jammu and Kashmir and Ladakh High Court has said the cross-Line of Control (LoC) trade between the Union territory and Pakistan-Occupied Kashmir constitutes intra-state trade under the GST Act, as PoK is legally a part of the territory of the erstwhile state of J&K.
The Court was hearing writ petitions filed by traders who had engaged in barter/supply transactions with people across the LoC during 2017-2019.
The petitioners have challenged the show-cause notices issued by tax authorities demanding GST, challenging the territorial and supply classification on various grounds.
A division bench comprising J

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Economic growth may exceed 7 pc, GDP to cross USD 4 tn mark in FY26: CEA
GST
Dated:- 28-11-2025
PTI
New Delhi, Nov 28 (PTI) Buoyed by more-than-expected 8.2 per cent GDP growth rate in the second quarter, Chief Economic Adviser V Anantha Nageswaran on Friday expressed optimism that India's economic growth will exceed 7 per cent this fiscal and the size of the GDP will cross the USD 4 trillion mark.
The Economic Survey tabled in Parliament in January had projected real economic growth of 6.3-6.8 per cent for FY26.
Briefing reporters after the release of the second-quarter GDP growth, Nageswaran said the Indian economy is expected to cross USD 4 trillion in the current fiscal year, given the current rate of growth.
India's Gros

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nt in the preceding three months and 5.6 per cent in the year-ago period, was aided by a strong showing from the services sector, which clocked double-digit growth.
Improving price dynamics and tax reforms are expected to boost household disposable incomes, strengthening the near-term consumption outlook, he added.
The third quarter (October-December) of the current fiscal year has commenced on a sound footing, the CEA pointed out.
The cumulative GST collection growth of 9 per cent for April–October 2025 indicates that the underlying revenue stream has remained resilient, aided by firm consumption and improved compliance.
Healthy corporate sector balance sheets augur well for sustained private investments in H2 of FY26, he said.
Nage

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Indian economy remains world's fastest growing despite US tariffs
GST
Dated:- 28-11-2025
PTI
New Delhi, Nov 28 (PTI) India's economy grew at a higher-than-expected 8.2 per cent – the fastest pace in six quarters – in July-September, as front-loading of production ahead of GST rates cut boosted consumption that helped offset the impact of steep US tariffs.
The 8.2 per cent gross domestic product (GDP) growth, which follows a 7.8 per cent expansion in the preceding April-June quarter, helped India retain the title of the world's fastest growing major economy, according to official data released on Friday.
The GDP growth came ahead of the festive season consumption boost on the back of the implementation of a significant reduction in the goods and services tax (GST). It, however, does not factor in the full quarter impact of an additional 25 per cent punitive tariff on Indian exports that took the total levy to 50 per cent in August.
The expansion, which was more than China

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fect on September 22.
Private consumer spending, which accounts for around 57 per cent of GDP, rose 7.9 per cent in July-September – the second quarter of the current 2025-26 fiscal – compared to a 7 per cent rise a quarter ago, according to data released by the National Statistics Office (NSO).
Manufacturing output rose 9.1 per cent against a growth of 7.7 per cent in the preceding quarter and 7.6 per cent in the year-ago period, while construction expanded 7.2 per cent from 7.6 per cent in the previous quarter. Government spending decelerated, declining 2.7 per cent in Q2, compared to a growth of 7.4 per cent in the previous quarter.
Finance Minister Nirmala Sitharaman said the GDP print shows that reforms and fiscal consolidation drove the Indian economy's robust growth and momentum.
“Various high-frequency indicators also point to continued economic momentum and broad-based consumption growth,” she said in a social media post. “The GDP estimates released today show the robust e

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arter (October-December) of the current fiscal year has commenced on a sound footing, he pointed out.
Further, the rural demand remains resilient while urban demand is gaining traction post-GST rate cut.
While the real GDP growth at 8.2 per cent in the second quarter exceeded expectations, the nominal print was modest at 8.7 per cent.
The difference between real and nominal is the smallest since the third quarter of fiscal 2020.
The third quarter is expected to continue benefiting from a low base and deflator. Also, aiding is the GST rate cut that bolstered private consumption, complementing reduced income tax and interest rates cuts because of the RBI repo rate reductions.
Dharmakirti Joshi, Chief Economist, Crisil Ltd, said the GDP series is getting revised to a new base of 2022-23 from 2011-12, which will capture the economy better, but can lead to deviation from current estimates.
DBS Bank economist Radhika Rao said the impact of deflator and low base was also reflected in th

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India records six-quarter high GDP growth of 8.2 pc in Q2
GST
Dated:- 28-11-2025
PTI
New Delhi, Nov 28 (PTI) The Indian economy grew by a higher-than-expected 8.2 per cent a six-quarter high as increased factory production in anticipation of a consumption boost from the GST rate cut helped offset deceleration in farm output.
The growth in the second quarter, which compared to 7.8 per cent in the preceding three months and 5.6 per cent in the year-ago period, was also aided by a good showing by the services sector, which clocked double-digit growth.
The previous high at 8.4 per cent was posted in the fourth quarter (January-March) of fiscal 2023-24.
The expansion helped India retain its position as the world's fastest-growing major economy. During the July-September quarter, the Chinese economy grew by 4.8 per cent.
As per data released by the National Statistics Office (NSO), the Gross Domestic Product (GDP) in the first half of 2025-26 worked out to be at 8 per cent,

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tions, printing at a six-quarter high of 8.2 per cent in Q2 FY2026, and displaying an acceleration over the 7.8 per cent growth seen in Q1 FY2026, in contrast to the widespread market expectation of some moderation.
While the government's final consumption expenditure expectedly contracted, led by weak revenue spending, the growth in gross capital formation moderated between these quarters, she said, adding that discrepancies played an important role in bumping up the GDP growth in Q2 FY2026 compared to the preceding quarter.
“An adverse base, the potential negative impact of US tariffs and limited headroom for capital spending by the Government of India (vis-a-vis the Budget Estimates) may dampen the pace of growth from the robust 8 per cent seen in H1 FY2026. Nevertheless, the FY2026 real GDP expansion now appears set to materially exceed 7 per cent,” she noted.
With the Q2 FY2026 GDP growth exceeding 8 per cent, she said, the probability of a rate cut in the December 2025 MPC rev

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imated at Rs 96.52 lakh crore against Rs 89.35 lakh crore in H1 of 2024-25, registering a growth rate of 8 per cent.
Nominal GDP or GDP at Current Prices in H1 of 2025-26 is estimated at Rs 171.30 lakh crore compared to Rs 157.48 lakh crore in H1 of 2024-25, showing a growth rate of 8.8 per cent, the statement said.
Gross Fixed Capital Formation (GFCF) has recorded a 7.3 per cent growth rate at Constant Prices against the growth rate of 6.7 per cent in Q2 of FY25.
The discrepancies (differences in values calculated using different methods of GDP estimation) jumped to Rs 1.62 lakh crore during the second quarter of this fiscal.
India's Q2 FY 2025–26 GDP growth came in stronger than expected at 8.2 per cent year-on-year, Rumki Majumdar, Economist, Deloitte India, said.
“With festive season spending and the momentum from GST 2.0 likely to support activity in Q3, we anticipate a significant upward revision to full-year growth estimates,” she said.
India's GDP deflator has fallen to

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