Analysis of Notifications & Circulars for Week ending 14th December 2025

Yash Paul Bhola 22 Dec 2025 2,439 Views 0 comment Print CA, CS, CMA | Articles, Featured

During the week of 8–14 December 2025, multiple regulatory authorities issued significant rulings, amendments, and clarifications across GST, customs, foreign trade, securities, insolvency, banking, and allied laws, though no updates emerged under income tax or MCA. GST developments were dominated by High Court and AAR rulings clarifying time limits on provisional attachment, tax rates, input tax credit eligibility, mixed and composite supplies, and the scope of exemptions for pure services, GTA services, and transfers of business as a going concern. Customs and DGFT notifications revised tariff values, extended IGST exemptions, streamlined export documentation, and updated inspection norms. SEBI strengthened governance, investor eligibility, digital accessibility, and fund structures across market intermediaries. Insolvency jurisprudence reaffirmed strict timelines, treatment of fraudulent transactions, operational debt, and accountability of insolvency professionals. RBI issued wide-ranging amendments on credit risk management, CRR–SLR reporting, currency movement, and derivatives transparency. Supreme Court rulings addressed enforceability of cash loans, arbitration privity, and nominee rights, reinforcing clarity across commercial and financial law.

Notifications & Circulars issued during week (8^th– 14^th Dec 2025)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)

A. Income Tax

No Notification/ Circular during the week.

B. GST

HC, Attachment Order Lapses after one-year limit under GST Law: Case of Devansh Wire and Cables Private Limited vs Union of India, HC Delhi Judgement Dated 11th November 2025. The court noted that under Section 83(2) of the CGST Act, any order issued under Section 83(1) ceases to operate after one year, and therefore the impugned attachment order was no longer operative. Accordingly, it directed that the concerned bank should not restrict operations of the petitioner bank account based on the impugned order, and the Sub-Registrar should not block transfer of the petitioner immovable property on the same basis.

AAR, GST @ 18% applicable on Waste-Processing Machinery supplied to Municipality: Case of Vishalsinh Mahendrasinh Atodariya, AAR Gujarat Ruling Dated 24th November 2025. AAR ruled that supply of goods to the Anand Municipality Corporation attract GST, and that all items listed in the applicant query were liable to 18% rate of GST.

AAR, ITC not allowed on IGST paid via Pre-Consultation Letter/TR-6 Challan: Case of Hansben Jayantibhai Patel, AAR Gujarat Ruling Dated 24th November 2025. AAR ruled that Input Tax Credit cannot be availed on the additional IGST paid pursuant to a pre-notice consultation letter issued under Section 28(1) of the Customs Act. It clarified that neither the pre-consultation letter nor TR-6 challan qualifies as a prescribed document for claiming ITC.

AAR, GST @ 5% applicable on Transport of Empty Containers by Rail: Case of Hansi Petro Chemical & Shipping Limited, AAR Gujarat Ruling Dated 24th November 2025. AAR held that, in the case of empty containers, no goods are transported in the container, rather the container itself is the good being transported. It concluded that empty containers qualify as “goods,” and their transportation by rail attracts the GST @ 5% under Entry 9(i), subject to the prescribed condition.

AAR, Bio-Diesel Fuel eligible for ITC under Forward Charge for GTA Services: Case of Amitkumar Maheshbhai Gulwani, AAR Gujarat Ruling Dated 24th November 2025. The applicant proposes to purchase renewable hydrocarbon bio-diesel (Mileage Diesel), taxable at 18%, to be used as fuel in their trucks for providing outward GTA services. The AAR held that the applicant may continue paying GST under forward charge, and availing full ITC, including on bio-diesel, subject to the prescribed conditions.

AAR, Imitation Zari Yarn classified under 56050020, GST @ 5% Applicable: Case of Sai Ram Jari Industries, AAR Gujarat Ruling Dated 24th November 2025. AAR ruled that the supply of imitation zari thread or yarn manufactured from metallised polyester or plastic film containing aluminium metal and commonly used in sarees and dress materials in lieu of real gold or silver zari, attracts 5% GST.

AAR, Tea and Premix Bundles classified as Mixed Supply: Case of Jivraj Tea International Pvt Ltd, AAR Gujarat Ruling Dated 4th December 2025. AAR ruled that in all cases i.e. whether black tea, CTC leaf tea, green tea variants, herbal tea, pyramid tea bags, or flavoured tea, the bundling of instant premix tea sachets was held to qualify as mixed supply. Accordingly, all such supplies would be taxed at 5% rate of GST.

AAR, GST Exemption on Road Transport for E-Commerce Deliveries, treated as GTA Service: Case of Flipkart India Private Limited, AAR West Bengal Ruling Dated 9th December 2025. The applicant stated that under the proposed model, after customers purchase goods on the ECO portal, sellers shall deliver the goods to a Source Mother Hub. The applicant then collect goods from that hub and transports them to customers delivery addresses, potentially through multiple transit hubs. The applicant stated that it would issue a single consignment note for each shipment from the Source Mother Hub to the delivery address, regardless of changes in vehicle or transit points. The applicant also assumes responsibility for the goods until delivery, including liabilities for damage and arranging transit insurance. AAR ruled that the new logistics model qualify as Goods Transport Agency (GTA) services and are exempt from GST when supplied to unregistered end customers under Serial No. 21A of Notification 12/2017 (Rate).

AAR, GST exemption for Household Water Data Collection Services: Case of Chhanda Bhattacharya, AAR West Bengal Ruling Dated 9th December 2025. AAR held that the collection of household data for Functional Household Tap Connections (FHTCs) using mobile applications or other instruments constitutes pure services provided to the State Government in relation to functions entrusted to Panchayats and Municipalities. As such, these services fall within Entry 3 of Notification 12/2017 (Rate) and are exempt from GST.

AAR, GST Exemption for Transfer of Business as Going Concern: Case of Horizon Edge Technologies Pvt Ltd, AAR West Bengal Ruling Dated 9th December 2025. AAR held that the transfer of assets and liabilities from Horizen to the applicant qualifies as a service by way of transfer of a going concern and is exempt under Entry 2 of Notification 12/2017 (Rate). The invoices and supplies issued in furtherance of, or as an extension of, original work orders will retain identical taxability. Other work orders executed post-transfer, related to government functions, qualify as exempt pure services.

AAR, Aerated Beverages in Restaurants taxable as Composite Service: Case of Summit Hotels & Resorts Pvt Ltd, AAR West Bengal Ruling Dated 10th December 2025. AAR ruled that aerated beverages supplied in a hotel restaurant, whether alone or with meals, are not standalone goods but form part of a composite supply of restaurant services. Accordingly, GST is levied at the rate applicable to restaurant services for specified premises.

AAR, Clarifications on Homoeopathic Medicines HSN Classification and GST Rates: Case of Sett Dey and Co Homoeo Lab, AAR West Bengal Ruling Dated 10th December 2025. AAR clarified that the term “medicament” encompasses all forms of medicines and remedies used for therapeutic or prophylactic purposes. Products manufactured in accordance with authoritative pharmacopoeia formulae and sold under the names specified therein fall within the scope of Schedule I entries 233 and 234. The ruling confirmed that for all applicable categories, the GST rate 5% is applicable.

AAR, Essential Hospital support services held GST-Exempt for meeting “Pure Service” Criteria: Case of Ex Servicemen Settlement Society, AAR West Bengal Ruling Dated 10th December 2025. AAR ruled that the security and scavenging services being supplied by the applicant to Government of West Bengal hospitals qualify as pure services related to functions entrusted under Articles 243G and 243W. Accordingly, such services fall under Serial No. 3 of Notification 12/2017 and are exempt from GST.

AAR, GST Exemption limited to Manpower-Based Municipal Services: Case of Shubhabrata Chowdhury, AAR West Bengal Ruling Dated 10th December 2025. AAR ruled that manpower-related services qualify as pure services under Entry 3. For all remaining maintenance-related services, exemption under Entry 3A applies only if the goods component does not exceed 25%. If it exceeds 25%, the services are taxable as per Notification 11/2017.

C. Central Excise

Amendments to Central Excise Act: Central excise duties on many items were repealed with the introduction of GST in 2017, except for some items such as tobacco and tobacco products, liquor, petroleum. The amendments seek to levy a higher excise duty on tobacco and related products once GST compensation cess ends to keep taxes on them at existing level.

(Link: Central Excise Notification Dated 11/12/2025)

D. Custom Duty

Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 12^th December 2025. The tariff value for crude palm oil is set at USD 1044 per metric ton, while gold and silver have tariff values of USD 1336 per 10 grams and USD 1969 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7142 per metric ton.

(Link: Customs Notification 76/2025 (NT) Dated 11/12/2025)

E. Directorate General of Foreign Trade (DGFT)

Diamond Imprest Imports exempted from IGST and Compensation Cess: The existing provision granted exemption from various customs duties for imports made under the Diamond Imprest Authorisation, including Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty. The revised paragraph retains these exemptions and further extends the benefit by exempting such imports from the entire Integrated Tax and Compensation Cess leviable under Section 3 of Customs Tariff Act.

(DGFT Notification 49/2025 Dated 09/12/2025)

Revision of ANF 7A and Chapter 7 for Deemed Export Benefits: Suppliers and recipients of goods are now required to submit applications in ANF 7A to the jurisdictional Regional Authority (RA) or Development Commissioner of SEZ/EOU, as applicable. Online submission is mandated, eliminating the need for physical copies, and applicants must upload prescribed documents at the time of filing. Claims can only be filed after full payment for the supplied goods.

(DGFT Public Notice 35/2025 Dated 10/12/2025)

List of empanelled Pre-Shipment Inspection Agencies (PSIAs) and inclusion of approvals: The public notice incorporates approvals from Inter-Ministerial Committee (IMC), including the enlistment of two new PSIAs i.e. DD International Global and NI- MET Metals Inc. and the approval for 11 existing PSIAs to add instruments such as Handheld Radiation Survey Meters and Spectrometers. All PSIAs must maintain valid calibration certificates, provide bank guarantees, update equipment mapping, and maintain operational offices and bank accounts in India.

(DGFT Public Notice 36/2025 Dated 11/12/2025)

Unit of Measurement amended for import items under SION A-290: The Public Notice amends the Unit of Measurement (UOM) under Standard Input Output Norms (SION) A-290 relating to the export product Metformin HCL. It revise the UOM format for two key import items i.e. Dicyanodiamide and DMF, used in the manufacture of Metformin HCL, replacing the earlier ‘kg/kg’ notation with a simplified ‘Kg’. format.

(DGFT Public Notice 37/2025 Dated 11/12/2025)

F. Securities and Exchange Board of India (SEBI)

Amendments to SEBI Infrastructure Investment Trusts (InvIT) Regulations: The amendment revises the definition of family trusts and intermediaries, requiring them to have a net worth exceeding ₹500 crore to be recognised under the relevant clause. It also aligns the definition of ‘qualified institutional buyer’ with that under the ICDR Regulations. Another update relates to the definition of ‘strategic investor’, expanding eligibility to institutional investors, specific foreign portfolio investors, and regulated NBFCs across middle, upper, and top layers. Strategic investors must invest at least 5% of the total offer size.

(Link: SEBI Notification Dated 09/12/2025)

Amendments to SEBI Real Estate Investment Trusts (REIT) Regulations: The amendment inserts a new definition of ‘institutional investor’, expanding it to include qualified institutional buyers, high- net-worth family trusts, and SEBI registered intermediaries with net worth above Rs 500 crore. It also updates the meaning of ‘qualified institutional buyer’ by aligning it with ICDR Regulations. It revises the definition of ‘strategic investor’, widening eligibility to include institutional investors, foreign portfolio investors, and RBI registered middle, upper, and top- layer NBFCs, along with other entities as may be notified. Strategic investors must jointly or individually invest at least 5% of the REIT offer size.

(Link: SEBI Notification Dated 09/12/2025)

Strengthening Governance of Market Infrastructure Institutions (MIIs): The circular amends the SECC Regulations and D&P Regulations regarding appointment, roles, and responsibilities of Managing Directors (MDs), Executive Directors (EDs), Chief Technology Officers (CTO), Chief Information Security Officers (CISO), Chief Risk Officers (CRiO), and Compliance Officers (CO). The key provisions include appointment of EDs through open advertisement, reporting structures of EDs to MDs, quarterly performance evaluations, and modified reporting lines for KMPs. Technology audits will be handled by CRiO, who will also attend relevant committee meetings.

(Link: SEBI Circular Dated 12/12/2025)

Deferment of timeline for implementation of Phase III of Nomination Circular: Earlier phases were staggered across June, September, August, and finally 15^th December 2025, due to operational challenges faced by AMCs, RTAs, depositories, and market participants. SEBI has now postponed the Phase III timeline to a future date that will be notified separately.

(Link: SEBI Circular Dated 11/12/2025)

Relaxation on geo-tagging requirement in India for NRIs while undertaking KYC: SEBI has modified the Master Circular on KYC to ease the re-KYC process for existing NRI clients. The requirement for clients to be physically located in India during digital re-KYC has been relaxed. Intermediaries must ensure digital verification apps incorporate features such as random action prompts, time-stamping, geo-location verification, and IP address anti-spoofing measures. The GPS coordinates captured must match the country of the client address proof, ensuring authenticity without the need for physical presence in India.

(Link: SEBI Circular Dated 10/12/2025)

Modalities for migration to AI only schemes and relaxations to Large Value Funds for Accredited Investors: The circular permits existing Alternative Investment Funds (AIFs) or schemes to convert to Accredited Investor (AI)-only or Large Value Funds (LVFs) schemes with investor consent, subject to reporting requirements to SEBI and depositories within 15 days of conversion. AI status of an investor at onboarding is retained throughout the scheme tenure. Maximum permissible extension for AI-only schemes is five years, including prior tenure. LVFs are exempted from following the standard placement memorandum template and annual audit requirements without specific investor waivers.

(Link: SEBI Circular Dated 08/12/2025)

Clarification on the Digital Accessibility: The circular mandates that the ‘Investors Right to have digital accessibility’ will now be incorporated into all relevant Investor Charters. REs must submit their readiness and compliance status for each digital platform by 31^st March 2026 to the designated reporting authorities. SEBI has also provided a standard format for reporting and clarified that investors may lodge accessibility-related complaints on SCORES, which REs must resolve to close the complaint. All REs are required to conduct periodic accessibility audits of websites, apps, and portals through certified accessibility professionals.

(Link: SEBI Circular Dated 08/12/2025)

G. Ministry of Corporate Affairs (MCA)

No Notification/ Circular during the week.

H. Insolvency and Bankruptcy Board of India (IBBI)

SC, Forfeiture of Rs 37.80 Crore upheld by because buyer missed timelines under IBC: Case of Shri Karshni Alloys Private Limited vs Ramakrishnan Sadasivan, SC Judgement Dated 10th December 2025. The apex court upheld the forfeiture of a purchaser deposit in a liquidation sale for failing to meet payment deadlines, emphasizing the NCLT authority to impose strict conditions to ensure timely resolution under the IBC.

NCLAT, Release of Property cannot be denied without confirming ED attachment List: Case of Mohan Reddy Bhumi Reddy Gari vs STCI Finance Ltd, NCLAT Delhi Judgement Dated 18th November 2025. The appellate tribunal held that the NCLT committed a manifest illegality by failing to ascertain whether Flat No. 2402 was actually attached. Instead of deciding the issue, the NCLT shifted the responsibility onto the financial creditor and placed the burden on the appellant to secure release of the flat through undertakings. It clarified that if the property was indeed attached under the provisional attachment order, then the Supreme Court order would protect such attachment. If the property was not attached, the NCLT had full authority to order its release. It remanded the matter back for fresh adjudication.

NCLAT, Provisional Attachment order ceases by virtue of legislative scheme under section 32A of IBC: Case of Vantage Point Asset Management Pte Limited vs Gaurav Misra Resolution Professional of Alchemist Infra, NCLAT Delhi Judgement Dated 4th December 2025. The appellate tribunal held that that Provisional Attachment order has to be treated to cease by virtue of legislative scheme under Section 32A of the Insolvency and Bankruptcy Code and there is no necessity to obtain any order by the Successful Resolution Applicant (SRA) from the adjudicating authority under the PMLA.

NCLAT, No limitation to look back when transaction held to be fraudulent under IBC: Case of Anubhav Anilkumar Aggarwal vs Rajendra Kumar Girdhar, NCLAT Delhi Judgement Dated 21st November 2025. The case involved a payment arrangement where 99% of the payment was required before the seller even owned the debt, which the appellate tribunal viewed as a pre-planned diversion of funds from the Corporate Debtor. It held that once a transaction has been held to a fraudulent transaction there is no limitation to look back if the other ingredients of Section 66 (1) of the Insolvency and Bankruptcy Code are satisfied.

NCLAT, Debt arising from advance to corporate debtor for supply of goods qualifies as Operational Debt: Case of Rakesh Bhailalbhai Patel vs Vasundhara Seamless Stainless Tubes Private Limited, NCLAT Delhi Judgement Dated 17th October 2025. The appellate tribunal held that debt arising from advance payment to corporate debtor for the supply of goods qualifies as operational debt under section 5(21) of the IBC. The operational debt and default established, hence section 9 application rightly admitted.

IBBI suspends Liquidator for arbitrary rejection of bids in Liquidation Auction: The DC noted that e-auction Bid Application Form granted the Liquidator broad discretionary powers to demand documents, accept or reject offers, cancel auctions, and determine the successful bidder. The DC held that these clauses conflicted with the statutory framework under Schedule I of the Liquidation Regulations, which requires transparent, reasoned decisions, including mandatory intimation of reasons when a highest bid is rejected. The second contravention related to the convening of the 6th SCC meeting, without even 24 hours’ notice. Regulations require a minimum five-day notice for meetings, reducible to not less than 24 hours. DC suspended the registration of IP Amresh Shukla for six months.

(Link: IBBI DC Order dared 11/12/2025)

I. Reserve Bank of India (RBI)

Export and Import of Indian Currency to or from Nepal and Bhutan: The new guidelines allow any person, except citizens of Pakistan or Bangladesh, to carry Indian currency notes in specific limits. Currency denominations up to Rs 2,100 can be freely moved across the border, while higher denominations (above Rs 2,100) can be exported or imported up to a total limit of Rs 2,25,000. The amendment under FEMA Export and Import of Currency Regulations was notified on 2^nd December 2025.

(Link: RBI Circular 140/2025 Dated 08/12/2025)

Amendment to RBI Commercial Banks- Credit Risk Management Directions: The amendments introduce provisions regarding maintenance of Cash Credit (CC), Current, and Overdraft (OD) accounts to strengthen credit monitoring and discipline. CC accounts remain operationally linked to working capital needs, while current and OD accounts may be maintained freely by customers with banking system exposure below Rs 10 crore. For exposures of Rs 10 crore or more, only banks with minimum 10% exposure or the largest lenders may maintain such accounts, others are restricted to collection accounts. Collection accounts must transfer funds to designated accounts within two working days.

(Link: RBI Circular 141/2025 Dated 11/12/2025)

Amendment to RBI Small Finance Banks- Credit Risk Management Directions: