The latest amendments aim to simplify compliance and promote investment while reducing penalties. The update signals a major shift toward a taxpayer-friendly regime.
The law now requires businesses to distribute ITC for common services through ISD. This eliminates optional use of cross-charge for such transactions.
The issue was whether ITC can be denied if suppliers fail to deposit tax. The Court held that bona fide purchasers cannot be penalized, and action must be taken against defaulting suppliers.
Wide-ranging reforms across labour, tax, GST, and banking systems come into force from April 2026. These changes aim to simplify compliance while strengthening transparency and financial discipline.
