Analysis of Notifications and Circulars for Week ending 22nd June 2025

A. Income Tax

Exemptions to Haryana Real Estate Regulatory Authority, Gurugram: Haryana Real Estate Regulatory Authority, Gurugram, an Authority  constituted under section 20(1) of the Real Estate (Regulation and Development) Act 2016, has been notified under section 10(46) for exemption on its income arising from Fee/ penalty received from builders/ developers, agents or any other stakeholders and interest on bank deposits.

(Link: Income Tax Notification 57/2025 Dated 16/06/2025)

Exemptions to Treasurer Charitable Endowments: Treasurer Charitable Endowments, an authority constituted by the Government of Haryana, has been notified under section 10(46) for exemption on its income arising from grants received from Central/ State Government for National Workers Relief Fund and interest on bank deposits.

(Link:  Income Tax Notification 58/2025 Dated 16/06/2025)

Exemptions to Himachal Pradesh Board of School Education, Dharamshala: Himachal Pradesh Board of School Education, Dharamshala, a Board established under Himachal Pradesh Board of School Education Act 1968, has been notified under section 10(46) for exemption on its income arising from Grants from State Government, Fees/ charges, sale of books and educational material, and interest on bank deposits.

(Link: Income Tax Notification 59/2025 Dated 16/06/2025)

Exemptions to Karnataka Electricity Regulatory Commission, Bengaluru: Karnataka Electricity Regulatory Commission, Bengaluru, a commission constituted under The Electricity Act 2003, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Income Tax Act.

(Link:Income Tax Notification 60/2025 Dated 16/06/2025)

Exemptions to Puducherry Planning Authority: Puducherry Planning Authority, an authority constituted under the Pondicherry Town and Country Planning Act,1969, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Act.

(Link: Income Tax Notification 61/2025 Dated 16/06/2025)

Exemptions to Dental Council of India: Dental Council of India, a body constituted under ‘The Dentists Act 1948, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Income Tax Act.

(Link: Income Tax Notification 62/2025 Dated 16/06/2025)

Exemptions to Yamuna Expressway Industrial Development Authority: Yamuna Expressway Industrial Development Authority, an authority constituted under the Uttar Pradesh Industrial Area Development Act 1976, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Income Tax Act.

(Link: Income Tax Notification 63/2025 Dated 16/06/2025)

Exemptions to Kerala Toddy Workers Welfare Fund: Kerala Toddy Workers Welfare Fund, a Board established under the Kerala Toddy Workers Welfare Fund Act 1969, has been notified under section 10(46) for exemption on its income arising from all sums received under said Act, contribution from members and interest on bank deposits.

(Link: Income Tax Notification 65/2025 Dated 19/06/2025)

Exemptions to Forum of Regulators: Forum of Regulators, an authority constituted by Govt. of India, Ministry of Power, in exercise of the powers conferred by section 166(2) of the Electricity Act 2003, has been notified under section 10(46) for exemption on its income Grants from Government, membership fees and interest on bank deposits.

(Link: Income Tax Notification 66/2025 Dated 19/06/2025)

Exemptions to IFSC Units from TDS on specified payments: The notification provide exemptions from Tax Deduction at Source (TDS) for specific payments made to units located in International Financial Services Centres (IFSCs). It provides that no tax deduction will be made on certain types of income received by IFSC units. The specific exempted payments include professional, consulting, and advisory fees for BATF Service Providers, Payments from Recognised Stock Exchanges and commission/incentives for Broker-Dealers, interest on lease and freight/hire charges for Finance Companies, etc. To avail this relaxation, the IFSC unit (payee) must submit a statement- cum-declaration in Form No. 1 to the payer, confirming their eligibility for Section 80LA deduction for ten consecutive assessment years.

(Link: Income Tax Notification 67/2025 Dated 20/06/2025)

CBDT Facilitates Income Tax Data sharing with MoP&NG: The CBDT has issued an order designating the Director General of Income-tax (Systems), New Delhi, as the authority for sharing specific income tax information with the Joint Secretary (Marketing), Ministry of Petroleum & Natural Gas (MoP&NG). MoP&NG will provide Aadhaar or PAN details along with assessment years to DGIT (Systems). In response, DGIT (Systems) will indicate whether an income tax return has been filed for the provided PAN/Aadhaar and if the declared income exceeds ₹10 lakh, subject to PAN Aadhaar linkage.

(Link: Income Tax CBDT Order Dated 17/06/2025)

HC, Valuation of unquoted equity shares by DCF method permissible under rule 11UA(2): Case of  PCCIT vs AH Multisoft Pvt Ltd, HC Delhi Judgement Dated 30th May 2025. HC held that valuation of unquoted equity shares held by the assessee by Discounted Cash Flow (DCF) method is permissible under rule 11UA(2) of the Income Tax Rules. Accordingly, appeal of revenue dismissed.

HC, Cross-Cost charges not Royalty, AO directed to issue NIL Tax Certificate: Case of Aecom Technical Services vs ITO, HC Delhi Judgement Dated 20th May 2025. HC held that payment of cross-cost charges does not construed as royalties within scope of Article 12(3) of the India-US DTAA, hence order rejecting application for NIL withholding tax set aside. AO directed to issue necessary certificate.

B. GST

Amendment to Goods and Services Tax Appellate Tribunal (GSTAT) rules: The corrigendum amending previous notification dated 24^th April 2025. The key changes include a clarification in Rule 115(1) of Chapter XIV, specifying the applicability of the rule within the broader framework of Chapters I to XIV, unless otherwise ordered by the President. Also, a correction has been made to the schedule of fees for interlocutory applications, where ‘Rule 118(2)’ is now to be read as ‘Rule 119(2)’. In Form GSTAT FORM-05, the reference ‘[See rule 6 and 81]’ has been revised to simply ‘[See rule 81]’.

(Link: Fin Min Notification Corrigendum Dated 18/06/2025)

Partial modification to Group of Ministers (GoM) on restructuring Compensation Cess: The GoM will now be convened by Shri Pankaj Chaudhary, the Union Minister of State for Finance. Its members include the Finance Ministers from various states as notified. All other terms of reference for the GoM remain unchanged.

(Link: GST Council Office Memo Dated 10/06/2025)

Advisory, Introduction of enhanced inter-operable services between E-Way Bill portals: GSTN will launch the E-Way Bill 2.0 portal on 1^st July 2025, to improve inter-operability with the existing E-Way Bill 1.0 portal. The new portal will offer additional functionalities such as generating E-Way Bills from Part-A details, creating consolidated E-Way Bills, extending validity, and updating transporter information, supplementing existing services like E-Way Bill generation and vehicle detail updates. Both portals will operate on a real-time synchronized architecture, mirroring data to ensure business continuity and reduce reliance on a single system.

(Link: GSTN Advisory Dated 16/06/2025)

Advisory to file pending returns before expiry of three years: Taxpayers are advised to file all pending returns before the three-year deadline. The taxpayers cannot file GSTR-1, GSTR- 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, and GSTR-9/9C after three years from their respective due dates. This restriction will be implemented on the GST portal starting from the July 2025 tax period. Any return with a due date three or more years ago that remains unfiled by the July 2025 tax period will be barred. For example, GSTR- 1/IFF for June 2022 and GSTR-9/9C for FY 2020-21 will become barred from 1^st August 2025.

(Link: GSTN Advisory Dated 18/06/2025)

Advisory, Handling of inadvertently rejected records on IMS: When a recipient inadvertently rejects invoices, debit notes, or ECO-documents on the Invoice Matching System (IMS), and their corresponding GSTR-3B for the same tax period has already been filed, the recipient can still claim Input Tax Credit (ITC). This is done by supplier, to re-report the exact same record in the same return period’s GSTR-1A or the amendment table of a subsequent GSTR-1/IFF. Upon accepting the amended record on IMS and recomputing GSTR-2B, the recipient can avail the full ITC.

(Link: GSTN Advisory Dated 19/06/2025)

AAR, Vehicle Leasing and Logistics Management Services falls under SAC 997319, 18% GST: Case of Shreyans Logistics Private Limited, AAR Odisha Ruling Dated 23rd May 2025. The applicant proposes to enter into business of Vehicle Leasing and Logistics Management Services, with aim to provide systematic and seamless goods transport vehicle leasing to GTAs with quality control and support in respect of operations and functional efficiency of such goods transport vehicles/ trucks. AAR ruled that appropriate HSC/SAC for the services is SAC 997319 ‘Leasing or rental services concerning other machinery and equipment without operator’ and GST rate is 18%.

AAR, MSETCL services like shifting of transmission lines, construction of new infrastructure, taxable at 18%: Case of Maharashtra State Electricity Transmission Company Limited (MSETCL), AAR Maharashtra Ruling Dated 30th April 2025. AAR has ruled that various works undertaken by MSETCL at the request of dedicated consumers constitute a “supply” under the GST regime and are liable to an 18% tax.

AAR Emission System classified as vehicle part: Case of Cummins Technologies India Pvt Ltd, AAR Maharashtra Ruling Dated 30th April 2025. AAR held that the After Treatment System (ATS), a critical component for controlling vehicle emissions, is classifiable as a part of a motor vehicle under Chapter Heading 8708 of the GST tariff.

AAR Real Estate redevelopment projects, GST on free units & monetary payments: Case of Sahara Vastu Nirmitee Pvt Ltd, AAR Maharashtra Ruling Dated 30th April 2025. AAR clarifies that the provision of “free” units to existing society members in exchange for development rights is a taxable supply of construction services. The value of this supply is based on comparable sales to independent buyers, and the developer is liable to pay GST. While monetary payments made by the developer to society members are part of the consideration for acquiring development rights, they do not constitute a separate supply of services by the developer, instead the tax liability related to the development rights falls on the developer under the reverse charge mechanism.

AAR, Raymond Realty’s GST rate limited to three towers: Case of Raymond Limited Realty Division, AAR Maharashtra Ruling Dated 30th April 2025. Realty Division, a business vertical of Raymond Limited, has not applied the pre 1^st April 2019, GST rate of 12% (with Input Tax Credit) for all towers in its “Ten X Habitat” residential project. The ruling states that only three out of the ten towers within the project meet the criteria for an “ongoing project,” thus limiting favourable tax treatment to these initial phases.

AAR, GST ITC denied on clinical trial samples and logistics: Case of PPD Pharmaceutical Development India Pvt Ltd, AAR Maharashtra Ruling Dated 30th April 2025. The firm involved in monitoring and managing clinical trials across India, has been denied ITC on IGST paid on imported clinical trial samples and associated CGST on services from Customs House Agents (CHA) and logistics providers. ITC is not permissible for goods disposed of as free samples.

AAR denies late ITC claim on Bill of Entry due to section 16(4) time limit: Case of Adi Enterprises, AAR Maharashtra Ruling Dated 29th April 2025. AAR held that the time limit prescribed under Section 16(4) of the CGST Act, for claiming ITC is applicable to IGST paid on imports. It clarified that a Bill of Entry, the document used for import clearances, should be treated on par with a tax invoice for the purpose of this time limit.

AAR, Veterinary services exempt, Chick sales commission and lab testing taxable under GST: Case of Venkateshwara Hatcheries Pvt Ltd, AAR Maharashtra Ruling Dated 29th April 2025. AAR ruled that Selling arrangement commission (10%) are not exempt. Veterinary services charges (3%) classified under SAC 99835 are exempt. Laboratory testing and analysis charges (7%) are not exempt.

AAR, Property tax survey services for municipalities not exempt from GST: Case of Sthapatya Consultations Pvt Ltd, AAR Maharashtra Ruling Dated 29th April 2025. AAR held that services provided to municipal councils for the purpose of property tax assessment are not exempt from GST. It determined that while these are pure services provided to a local authority, they do not fall under the specific functions entrusted to a municipality under Article 243W of the Constitution, which is a mandatory condition for availing the exemption.

AAR denies ITC on pipeline, rules floating unit is a Factory: Case of H-Energy Gateway Pvt Ltd, AAR Maharashtra Ruling Dated 29th April 2025. AAR ruled that applicant is not eligible to claim ITC on the goods and services used for constructing its “Tie-in pipeline.” It held that the company’s Floating Storage and Regasification Unit (FSRU), a vessel, qualifies as “factory premises” under GST law, thereby excluding the connecting pipeline from the definition of eligible “plant and machinery.”

HC, Investment Management Agreement interpretation beyond Writ Jurisdiction: Case of DMI Alternatives Pvt Ltd vs Addl. Commissioner, HC Delhi Judgement Dated 7th May 2025. HC held that Investment Manager Expenses would constitute part of the management fee or not would have to be analysed on the basis of Investment Management Agreement. Accordingly, held that the interpretation of such agreements which involves a factual analysis are beyond the scope of writ jurisdiction.

HC, Parallel GST proceedings barred: Case of Sun Automation Limited vs Sales Tax Officer, HC Delhi Judgement Dated 1st May 2025. HC has ruled that the DGST Department lacked the authority to initiate proceedings on a subject matter already adjudicated by CGST Department. This decision relates to the interpretation and application of Section 6(2)(b) of CGST Act.

C. Central Excise

No Notifications/ Circular during the week.

D. Custom Duty

Anti-dumping Duty on Aluminium foil up to 80 micron originating  in or exported from China: Anti-dumping Duty has been imposed on imports of Aluminium foil up to 80 micron originating in or exported from China and imported into India. The anti-dumping duty shall be effective for a period of five years.

(Link: Custom Notification 15/2025 (ADD) Dated 19/06/2025)

Anti-dumping Duty on Acetonitrile originating  in or exported from China, Russia and Taiwan: Anti-dumping Duty has been imposed on imports of Acetonitrile originating in or exported from China, Russia and Taiwan and imported into India. The anti-dumping duty shall be effective for a period of five years.

(Link: Custom Notification 16/2025 (ADD) Dated 19/06/2025)

Anti-dumping Duty on Pretilachlor and PEDA originating  in or exported from China: Anti-dumping Duty has been imposed on imports of Pretilachlor and PEDA originating in or exported from China and imported into India. The anti-dumping duty shall be effective for a period of five years.

(Link: Custom Notification 17/2025 (ADD) Dated 19/06/2025)

Extension of use of ICETAB for efficient export examination and clearance: The examining officers will now be able to view Shipping Bill details, including examination orders, Risk Management System (RMS) instructions, and supporting documents, directly on the ICETAB, eliminating the need for paper documentation during export examinations. The digital system also allows officers to promptly enter examination reports and upload four key images of the cargo, which will be stored in the e-sanchit repository. In cases where ICETAB use is not feasible due to exigencies, prior approval is required and must be recorded.

(Link: Custom Circular 17/2025 Dated 19/06/2025)

Ensuring adherence of Indian Standard of respective Imported Steel and Steel Products: The instructions are based on an order from the Ministry of Steel, emphasizes compliance with the Steel and Steel Products (Quality Control) Order, 2024 (QCO). Currently, 151 Indian Standards, covering steel and steel products under Chapters 72 and 73 of ITC(HS) codes, are integrated into this QCO. The instruction clarifies that input materials for these steel products, which are also part of the QCO, must also conform to their respective Indian Standards.

(Link: Custom Instructions 16/2025 Dated 18/06/2025)

Import policy amended for Palladium, Rhodium, Iridium: It impacts the import of Palladium, Rhodium, and Iridium, along with their various forms (unwrought, powder, and other). While the import policy for these items under specific ITC(HS) codes remains ‘Free’, a new condition has been introduced. Specifically, the import of alloys of Palladium, Rhodium, or Iridium that consist of more than 1% gold by weight is now ‘Restricted’.

(Link: Custom Instructions 17/2025 Dated 19/06/2025)

Restrictions in import of precious metal compounds: The import policy for various colloidal precious metals, inorganic or organic compounds of precious metals, and amalgams of precious metals (including those of gold, silver, platinum, rhodium, and palladium) has been revised from ‘Free’ to ‘Restricted’ with immediate effect. These items, previously importable without specific restrictions, now require a license or authorization for import into India.

(Link: Custom Instructions 18/2025 Dated 20/06/2025)

Extension of validity of the NOC for the Alcoholic Beverages bottled in origin & in bulk:  It pertains to the validity of No Objection Certificates (NOCs) for imported alcoholic beverages, specifically those bottled at origin and in bulk, containing over 10% alcohol and lacking an expiry date. The FSSAI has decided that for such consignments, the NOC issued under the FSS (Import) Regulations, 2017, will now be valid for 365 days. If consignments remain in the port’s Customs area beyond this 365 day period, a visual inspection can be conducted upon payment of a fee for re-validation of the NOC.

(Link: Custom Instructions 19/2025 Dated 20/06/2025)

SC, CBEC Circular on 1% AIR Duty Drawback for Merchant Exporters retrospective from 2008: Case of Suraj Impex (India) Pvt Ltd vs Union of India, SC Judgement Dated 22nd May 2025. The apex court held that CBEC Circular No. 35/2010 dated 17^th September 2010, should be given retrospective effect from the year 2008. Consequently, the appellant merchant exporter was entitled to the benefit of 1% All Industry Rate (AIR) Duty Drawback on its export of Soyabean Meal from the year 2008.

SC, Bank Guarantee encashment not duty payment, Unjust Enrichment doctrine inapplicable: Case of Patanjali Foods Limited vs Union of India, SC Judgement Dated 19th May 2025. The apex court held that arbitrary encashment of the bank guarantees cannot be treated as payment of duty or duty paid by a claimant. Thus, the doctrine of unjust enrichment or Section 27 of the Customs Act would not be applicable.

HC, Gold Jewellery & iPhone are Personal Effects, release ordered: Case of Yogesh Anand vs Commissioner of Custos, HC Delhi Judgement Dated 21st May 2025. HC has held that gold jewellery and an iPhone, the detained items were considered personal effects under established Indian baggage rules and highlighted a significant procedural lapse i.e. the failure to issue a formal show cause notice. It ordered release of these items.

E. Directorate General of Foreign Trade (DGFT)

Pharma Grade Sugar export for 25000 MT allowed annually with authorization: Presently, all types of sugar, including raw, white, refined, and organic, were restricted for export, requiring specific permission from the Directorate of Sugar. Exports to the EU, USA, and UK under CXL Quota and Tariff Rate Quotas (TRQ) were permitted under specific conditions and quantitative ceilings. The revised policy introduces a new provision allowing the export of Pharma Grade Sugar up to a limit of 25,000 metric tons per financial year. This is subject to obtaining a Restricted Export Authorization.

(Link: DGFT Notification 17/2025 Dated 17/06/2025)

Amendment in import policy of Precious Metals: The notification amends the import policy for various forms of Palladium, Rhodium, and Iridium. While the import of these metals in their unwrought, powder, or other forms remains ‘Free’, the import of alloys of Palladium, Rhodium, or Iridium that contain more than 1% gold by weight is now ‘Restricted’. It aims to regulate the import of such alloys, particularly those with a significant gold content.

(Link: DGFT Notification 18/2025 Dated 17/06/2025)

Amendment in import policy for Precious Metal Compounds: The Notification amends the import policy for items classified under CTH 2843 of ITC (HS) 2022, Chapter 28. It changes the import status of colloidal precious metals, their inorganic or organic compounds, and amalgams from ‘Free’ to ‘Restricted’, effective immediately. The import will be allowed for industrial and manufacturing sectors, including electronics, electrical and specialised chemical industry, against an import authorization.

(Link: DGFT Notification 19/2025 Dated 17/06/2025)

Seeking application for allocation of Pharma Grade Sugar under restricted category: DGFT has announced the opening of applications for the export of Pharma Grade Sugar under a restricted category. The Government has permitted exports up to 25,000 MT for the current sugar season, ending 30^th September 2025. Exporters must possess a valid drug manufacturing license from the relevant State Licensing Authority and provide NABL-accredited lab reports confirming compliance with Pharma Grade Sugar specifications at the time of export.

(Link: DGFT Trade Notice 06/2025 Dated 16/06/2025)

F. Securities and Exchange Board of India (SEBI)

Master Circular for Stock Brokers: The updated consolidated Master Circular incorporates all directions and guidelines issued to stock brokers up to 10^th June 2025. It aims to streamline regulatory references by centralising applicable instructions and to protect investor interests and ensure effective market regulation.

(Link: SEBI Master Circular Dated 17/06/2025)

SEBI Board approves market reforms for Ease of Business: The key decisions include relaxing public issue requirements for equity shares from converted compulsory convertible securities and founder ESOPs, and mandating dematerialization of securities for a broader range of shareholders, including promoter groups and key managerial personnel, prior to filing a Draft Red Herring Prospectus (DRHP). The Board also simplified placement documents for Qualified Institutional Placements (QIPs) and introduced special measures for voluntary delisting of certain Public Sector Undertakings (PSUs) with high government/PSU shareholding, allowing for a fixed-price delisting process.

— The amendments were approved for the Social Stock Exchange framework to facilitate access for various social enterprises, rationalized regulations for Merchant Bankers and Debenture Trustees to permit other financial services within the same legal entity, and measures to ease operations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). It also streamlined certification requirements for associated persons in securities markets and allowed Category I & II Alternative Investment Funds (AIFs) to offer co-investment opportunities within their existing structure.

(Link: SEBI Press Release 33/2025 Dated 18/06/2025)

Consultation Paper on Guidelines for responsible usage of Artificial Intelligence (AI) and Machine Learning (ML) in Indian securities markets: It follows SEBI earlier efforts to inventory AI/ML applications in the financial sector, recognizing the increased adoption of these technologies, including Generative AI and Large Language Models, across various functions like advisory services, risk management, and surveillance. The proposed guidelines, include Model Governance, Investor Protection (Disclosure), Testing Framework, Fairness and Bias, and Data Privacy and Cyber Security. It addresses emerging risks such as malicious usage, concentration risk, herding behaviour, lack of explainability, model failure, and accountability concerns, proposing control measures like watermarking, diversification of providers, and enhanced human oversight. The comments/ suggestions from stakeholders are invited.

(Link: SEBI Consultation Paper Dated 20/06/2025)

Consultation Paper on Client Code Modification- ETFs and Institutional clients: The proposal is to allow Market Makers (MMs) of Exchange Traded Funds (ETFs) to modify Unique Client Codes (UCC) to the Asset Management Company (AMC) without penalty. Also, the proposal permit client code modifications for various institutional clients, including banks, Domestic Financial Institutions, and insurance companies, as well as certain non-institutional clients like Portfolio Management Services (PMSs) and Non-Resident Indians (NRIs). The comments/ suggestions from stakeholders are invited.

(Link: SEBI Consultation Paper Dated 20/06/2025)

Consultation Paper, Draft circular mandating periodic disclosure requirements for Securitised Debt Instruments: Securitization involves pooling assets or receivables and re-packaging them into pass-through instruments, with cash flows directed to investors. The proposed amendments mandate that special purpose distinct entities and their trustees provide half-yearly information to the Board in a specified manner. It outlines the proposed format for these disclosures, to be submitted to SEBI and relevant stock exchanges within 21 days from the end of March or September. The comments/ suggestions from stakeholders are invited.

(Link: SEBI Consultation Paper Dated 16/06/2025)

Consultation Paper on extending certain flexibilities under accreditation framework: It seeks to expand the eligibility criteria for accreditation agencies to include all KYC Registration Agencies (KRAs). It also seeks to allow investment managers to ‘provisionally’ onboard investors as accredited investors based on their initial due diligence, while the accreditation process can proceed parallelly. The comments/ suggestions from stakeholders are invited.

(Link: SEBI Consultation Paper Dated 17/06/2025)

G. Ministry of Corporate Affairs (MCA)

MCA designates Special Courts for Corporate Offenses: The designated courts include the Court of Chief Judicial Magistrate or Additional Chief Judicial Magistrate, SAS Nagar, for the State of Punjab; the Court of Chief Judicial Magistrate or Additional Chief Judicial Magistrate, Gurugram, for the State of Haryana; and the Court of Chief Judicial Magistrate, Chandigarh, for the Union Territory of Chandigarh. It aims to facilitate the speedy trial of offenses as outlined in Section 435(2)(b) of the Act.

(Link: MCA Notification Dated 18/06/2025)

Waiver of Late Fees for 13 Forms during V3 upgrade: MCA has granted a one-time relaxation in additional fees for filing 13 specific e-forms due to the transition of the MCA21 portal from Version 2 (V2) to Version 3 (V3). During the system migration period, from 18^th June 2025, to 13^th July 2025, these forms will be temporarily unavailable for submission. To ease the transition and avoid penalising stakeholders, filings where the due date or resubmission date falls between this period, will be permitted without additional fees if submitted by 15^th August 2025.

(Link: MCA Circular 01/2025 Dated 16/06/2025)

Separate filing of e-form CSR-2 post the period of transition from MCA21 V2 to V3: With effect from 18^th June 2025, the V2 system will be decommissioned to facilitate the smooth rollout of annual filing and related e-forms in V3. The stakeholders can now independently file the e-Form CSR-2, as amended in the 4th proviso to Rule 12(1B) of the Companies (Accounts) Rules, 2014. Following the transition, stakeholders intending to file CSR-2 using the V2 SRN of Form AOC-4, AOC-4(XBRL), or AOC-4(NBFC) can do so on the V3 portal during a designated period, from 14^th July to 15^th August 2025. The MCA emphasizes that these changes aim to streamline the filing process and ensure the seamless adoption of the new portal version.

(Link: MCA Circular 02/2025 Dated 16/06/2025)

H. Insolvency and Bankruptcy Board of India (IBBI)

NCLAT, Pre-existing employment disputes not adjudicable under IBC: Case of Akhilesh Kulshrestha vs SAAB India Technologies Pvt Ltd, NCLAT Delhi Judgement Dated 07th May 2025. The appellant tribunal held pre-existing disputes arising from employment contracts, particularly concerning emoluments and salaries, cannot be resolved under the Insolvency and Bankruptcy Code (IBC), 2016. It held that such matters are contractual in nature and fall outside the purview of the NCLT.

NCLAT upholds multiple challenge rounds in Insolvency Process: Case of Anuj Goyal vs Amit Chandrakant Shah, NCLAT Delhi Judgement Dated 16th May 2025. The appellate tribunal has affirmed the Adjudicating Authority’s decision to allow the Resolution Professional (RP) to conduct a second and even third challenge mechanism in the Corporate Insolvency Resolution Process (CIRP). It reinforces the Committee of Creditors’ (CoC) broad discretion in maximizing the value of the corporate debtor, even if it means allowing new bidders or additional rounds of bidding.

NCLAT, Notice under section 13(2) of SARFAESI to be treated as notice for invocation of personal guarantee: Case of Asha Basantilal Surana vs State Bank of India, NCLAT Delhi Judgement Dated 15th May 2025. The appellant authority held that where Notice under Section 13(2) of SARFAESI Act, makes a demand as per the Guarantee Agreement between the parties, the Notice has to be treated as notice for invocation of Personal Guarantee. Thus, order rejecting application for initiation of personal insolvency against personal guarantor not sustainable.

I. Reserve Bank of India (RBI)

Master Circular on credit facilities to SC/ST beneficiaries: The circular outlines measures to improve access to finance, employment opportunities, and economic inclusion of SC/ST communities. Banks are required to integrate SC/ST- focused schemes into their district credit plans, coordinate with District Industries Centres, and provide tailored financial products. It emphasizes adherence to centrally sponsored schemes like DAY- NRLM, which reserves 50% of its benefits for SC/ST beneficiaries, and mandates that at least 40% of Differential Rate of Interest (DRI) loans be extended to these communities. It also includes details on the Credit Enhancement Guarantee Scheme for SCs, with guarantees from IFCI ranging between ₹15 lakh to ₹5 crore.

(Link: RBI Notification 56/2025 Dated 16/06/2025)

Revision of Agency Commission rates for banks: Under the revised structure, agency banks will receive Rs 40 per transaction for government receipts handled in physical mode and Rs 12 per transaction for receipts in electronic mode. Pension payments will be compensated at Rs 80 per transaction, while other payment transactions (excluding pensions) will earn 7 paise per Rs 100 of turnover. RBI has also clarified that agency commission will be applicable on all payment transactions, except those that are pre-funded or where the government already provides compensation.

(Link: RBI Notification 57/2025 Dated 16/06/2025)

Updates on UNSC Sanctions List Under UAPA Compliance: MEA has informed about the UNSC amendments on its ISIL (Da’esh) and Al-Qaida Sanctions List of individuals and entities, which are subject to the assets freeze, travel ban and arms embargo. Regulated Entities (REs) are advised to take note for necessary compliance in terms of Master Directions on KYC.

(Link: RBI Notification 58/2025 Dated 16/06/2025)

RBI Project Finance Directions effective 1^st October 2025:  These aim to standardize the framework for financing infrastructure and non-infrastructure projects, including commercial real estate (CRE) and commercial real estate-residential housing (CRE-RH) sectors, by all Regulated Entities (REs). The key aspects of the new guidelines include stringent prudential conditions for project sanction, ensuring financial closure and clear Date of Commencement of Commercial Operations (DCCO) documentation prior to disbursement. Minimum land/right of way requirements have been set for various project types (e.g., 50% for PPP infrastructure, 75% for others). Disbursements must be proportionate to project completion stages and equity infusion, certified by an Independent Engineer/Architect.

— The directions introduce a structured approach to stress resolution. A ‘credit event’, defined to include default, DCCO extension needs, or financial difficulty, triggers a collective resolution process during the construction phase. A prima facie review must occur within 30 days of a credit event. Resolution plans involving DCCO extension are permitted to retain ‘Standard’ asset classification under specific conditions, including time limits (up to 3 years for infrastructure, 2 years for non-infrastructure), limits on cost overruns (up to 10% of original project cost), and strict adherence to financial parameters. Additional specific provisions (0.375% for infrastructure, 0.5625% for non-infrastructure) are mandated for each quarter of permitted DCCO deferment for ‘standard’ assets.

(Link: RBI Notification 59/2025 Dated 19/06/2025)

Updates on UNSC Sanctions List Under UAPA Compliance: MEA has informed about the UNSC amendments on its ISIL (Da’esh) and Al-Qaida Sanctions List of individuals and entities, which are subject to the assets freeze, travel ban and arms embargo. Regulated Entities (REs) are advised to take note for necessary compliance in terms of Master Directions on KYC.

(Link: RBI Notification 60/2025 Dated 19/06/2025)

Review of Priority Sector Lending norms- Small Finance Banks: Presently, SFBs are required to allocate 75% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE) to priority sectors. This included a mandatory 40% to specific PSL sub- sectors and a flexible 35% to sub-sectors where the bank had a competitive advantage. The new directive reduces the overall PSL target to 60% of ANBC or CEOBE, whichever is higher. Under this revised structure, SFBs will continue to allocate 40% to the mandated PSL sub- sectors, but the flexible component, which can be directed to one or more preferred sub-sectors, will now be reduced to 20%.

(Link: RBI Notification 61/2025 Dated 20/06/2025)

Master Direction, RBI Electronic Trading Platforms Directions: These establish a revised regulatory framework for Electronic Trading Platforms (ETPs) where eligible instruments are traded. It focuses on enhancing the operational resilience, risk management, and transparency of ETPs. The key aspects include comprehensive eligibility criteria for authorization, encompassing general, financial, and technological requirements. ETP operators must be Indian companies with a minimum net worth of Rs 5 crore and demonstrate experience in financial market trading infrastructure.

(Link: RBI Notification Master Direction 137/2025 Dated 16/06/2025)

Amendment to FEMA Non-debt Instruments Rules: The amendment particularly focus on foreign direct investment (FDI) in prohibited sectors. A new sub rule 7(2) has been added, permitting Indian companies operating in sectors where FDI is prohibited to issue bonus shares to their existing non-resident shareholders. This is subject to the condition that the issuance does not alter the existing shareholding pattern.

(Link:   Fin Min FEMA Notification Dated 11/06/2025)

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Compiled by CMA Yash Paul Bhola, an MBA and FCMA, drawing upon his distinguished career as Former Director (Finance) of National Fertilizers Limited.

Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)