New Delhi, Sept. 10 -- The goods and services tax (GST) reforms will be credit positive for Indian companies as it will boost consumption and reduce risks of US tariffs, noted global rating agency Fitch in its latest report.

"The reform of India's goods and services tax (GST) should be generally credit positive for our rated Indian companies, stimulating consumption and reducing risks to the economic growth outlook as higher US tariffs threaten export demand," the report noted.

Fitch expects these and other GST changes to result in lower prices, though some firms may seek to absorb the benefit themselves rather than passing it on to consumers through price cuts.

Most of India's auto manufacturers have already announced price cuts. Fitc...