WEEkly Review · REAL ECONOMY

This Week in Indian Business: Tariffs, Tech, and Tax

Tariff/GST systems, AI & data-centre capex signals, and concrete actions for ops within 14 days.
By bataSutra Editorial · October 25, 2025
In this piece:
  • The short — five-line brief with actions
  • Tariffs & GST — who pays, who passes through
  • Tech & capex — data centres & AI hardware
  • Tax/admin — consumer & SME impact
  • Playbook — Owner · Doc · Due & risk triggers

The short

  • Tariffs: Scrutiny on borderline HS codes rose this week; importers should lock broker pre-clearances and pass-through clauses.
  • GST: Clarifications on composite items require invoice & ERP changes; run a relabel plan to avoid dual-MRP friction.
  • AI/DC: Fresh DRHPs from data-centre and renewables names signal sustained infra demand; verify power/water SLAs before capex.
  • Households: Fuel city-bands broadly stable m/m; staples remain the volatility driver in urban CPI baskets.
  • Play: Advance-purchase critical imports; phase DC builds (shell-first); keep dual-rail eKYC in case of API churn.

Tariffs & GST — who pays, who passes through

ItemWhat changedImmediate actionP&L effect (near-term)
Customs reclassificationBorderline parts under tighter viewRe-map HS codes; secure broker opinions+50–150 bps COGS swing
GST on combosClarified rate treatmentERP/invoice update; credit note SOPOne-off WC impact
Refund mechanicsFaster provisional refunds liveFile SOP; daily MIS; track TATLiquidity release in 7–14d

Tech & capex — data centres & AI hardware

Signals

  • New DRHPs in data centres and renewables manufacturing (see IPO piece) back infra orderbooks.
  • GPU availability improving in tranches; chilled-water capacity and transformer lead times are the bottlenecks.

Execution watch

  • Verify power SLAs, water permissions, and grid connection timelines before locking IRR assumptions.
  • Adopt phased commissioning to manage chip/cooling cycles and preserve returns.

Tax/admin — consumer & SME impact

LeverHousehold effectSME effectAction
Fuel bandsStable city bandsFreight quotes steadyFix quarterly transport SLAs
eKYC/API editsFewer onboarding retriesLower drop-offs with dual-railKeep offline fallback live
Refund cadenceCash-flow reliefWeekly CFO dashboard

Playbook — Owner · Doc · Due & risk triggers

WorkstreamOwnerDocDueTrigger to escalate
Tariff mappingIndirect TaxHS code remap pack5 dPort holds / broker disputes
GST relabelSales OpsMRP memo; stock tagging7 dDual-MRP exceptions > 5%
DC capexCFO · ProjectsPower/water SLA binder10 dTransformer lead time > 20 wks
eKYC resilienceCTOAPI diff + fallback SOP5 dAuth failures > 1.5× baseline