Notifications & Circulars issued during week (25th– 31th Aug 2025)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
A. Income Tax
IIT Madras Research Park gets Income Tax approval for scientific research: The Principal Chief Commissioner of Income Tax (Exemptions), has approved IIT Madras Research Park, for ‘Scientific Research’ under section 35(1)(iia) read with rule 5F of Income Tax, for a period of five years, starting from the AY 2026-27. It will enable the company to receive certain benefits, related to its scientific research activities.
(Link: Income Tax PCCI (Exemptions) Notification 01/2025 Dated 27/08/2025)
Exemptions to Karnataka State Building & Other Construction Workers Welfare Board: Karnataka State Building & Other Construction Workers Welfare Board, a board constituted by Government of Karnataka, has been notified under section 10(46) for exemption on its income arising from Government grants, Sums received from other sources, Cess, Fees, Subscriptions and interest on bank deposits.
(Link: Income Tax Notification 138/2025 Dated 22/08/2025)
Exemptions to Credit Guarantee Fund Trust for Animal Husbandry and Dairying: Credit Guarantee Fund Trust for Animal Husbandry and Dairying, a Trust constituted by Central Government, as part of the Prime Minister’s Atma Nirbhar Bharat Abhiyan stimulus package, has been notified under section 10(46) for exemption on its income arising from Guarantee fees, Income from Mutual Funds, Miscellaneous Income and interest on bank deposits.
(Link: Income Tax Notification 139/2025 Dated 22/08/2025)
Taxation Laws Amendment Act, 2025: The Taxation Laws Amendment Act, introduces changes to the Income- tax Act, and the Finance Act, 2025. It provides for tax treatment of specific payments from the National Pension System Trust to subscribers of the Unified Pension Scheme, making certain lump-sum amounts tax-exempt. It extends tax exemptions to the Public Investment Fund of the Government of Saudi Arabia and its subsidiaries under certain conditions. It also amends section 80CCD regarding taxability of receipts from the Unified Pension Scheme, while also addressing transfers between different pension accounts. It also updates the Finance Act to revise the conditions under which tax assessment proceedings are considered abated during a search or requisition.
(Link: Taxation Law Amendment Act 2025 Notification Dated 21/08/2025)
B. GST
GST Advisory, System Enhancement for Order-Based Refunds: As per the available functionality, taxpayers could claim refunds under the category “On account of Assessment/Enforcement/Appeal/Revision/Any Other Order” (ASSORD). The following changes have been implemented in the system:
- Refunds can now be claimed irrespective of the Demand ID status.
- Refunds are allowed even when the cumulative balance is positive or zero, provided any minor head has a negative balance.
- Only negative balances will be auto-populated in the refund application (Form RFD-01), taxpayers cannot claim any refund for the positive amounts within the demand.
- Order Number Suggestions:The system automatically suggests the most recent demand order associated with a negative balance such as order-in-original, rectification order or appellate order
- Tooltips:Clear guidance is provided near the Order No. and Demand ID fields to help taxpayers enter the correct details.
A comprehensive user manual and FAQs will be shared shortly.
(Link: GSTN Advisory Dated 28/08/2025)
AAR, GST on PVC Raincoats classified under HSN 392620 at 18% GST: Case of Waterproof Products Manufacturers & Traders Welfare Association, AAR West Bengal Ruling Dated 22nd August 2025. AAR ruled that the HSN code for raincoat made of PVC sheet is 392620. The GST tax rate on supply of PVC raincoat will be covered by Entry no. 111 of Schedule III and tax rate will be 9% CGST + 9% SGST.
AAR Clarification of GST on Hotel American/ Continental plans and restaurant services: Case of Orsino Hotels & Resorts LLP, AAR West Bengal Ruling Dated 22nd August 2025. AAR ruled that under the American Plan (AP) or Continental Plan (CP), the food component will have no separate treatment for the purpose of taxation, since it is clearly a case of “composite supply”. If the total value of the combined supply (accommodation and food) exceeds Rupees Seven thousand five hundred it will be taxable under serial no. 7(vi) and the tax rate will be 9% CGST + 9% SGST.
— In the case the separate restaurant services provided in the hotel premises to walk-in guests will be taxable under serial no. 7 (ii), since the hotel premises is not a ‘specified premises’ for financial year 2025-26 as per data furnished by the applicant. In that case the tax rate will be 2.5% CGST + 2.5% SGST subject to the condition prescribed in column 5 of the table in the said notification for financial year 2025-26.
AAR, GST Rate on accommodation services provided to RBI Staff: Case of Orsino Hotels & Resorts LLP, AAR West Bengal Ruling Dated 22nd August 2025. AAR ruled that the accommodation services provided by the applicant to RBI having room tariff of less than Rs.7500 per day per unit, as part of the contract for providing accommodation (rooms) services to RBI staff, are taxable at the rate of 12% under GST.
AAR, ITC not allowed on Electrical Works for factory expansion: Case of Shibaura Machine Private Limited, AAR Tamil Nadu Ruling Dated 18th August 2025. AAR ruled that the taxes under GST paid on the electrical installation work carried out for expansion of factory for manufacturing activity is not eligible for availment of Input Tax Credit (ITC) by the applicant, as it is blocked under Sections 17(5)(c) and 17(5)(d) of the CGST Acts.
AAR, M-Sand, Blue Metal & Bricks purchases not liable to GST under RCM: Case of Amman Blue Metals, AAR Tamil Nadu Ruling Dated 18th August 2025. AAR ruled that purchase of M-Sand, P-Sand, Boulders, Blue Metals and Bricks, Hollow Bricks from unregistered person are not liable to reverse charge mechanism as per Section 9(3) or 9(4) of the CGST Act.
AAR, Non-Edible Castor Oil classified under HSN 1518, IGST @5%: Case of Vinayak Agro Industries, AAR Gujarat Ruling Dated 12nd August 2025. AAR ruled that the output of applicant is Castor Oil (non-edile), classifiable under HSN 1518 and is leviable to IGST @ 5% in terms of serial no 90 of Schedule I of notification 1/2017 Dated 28th June 2027.
AAR, Employee Dormitory accommodation is not supply, ITC allowed: Case of Suzuki Motor Gujarat Pvt Ltd, AAR Gujarat Ruling Dated 22nd August 2025. AAR ruled that GST is not liable to be discharged on the portion of amount recovered by the applicant from its permanent employees towards the accommodation facilities provided to them. GST is liable to be discharged on the portion of amount recovered by the applicant from student trainees towards the accommodation facilities provided to them.
— The applicant is eligible to avail ITC in respect of GST charged by the ASP for the accommodation facilities provided to permanent employees. The ITC is restricted to the extent of cost borne by the applicant. The applicant is also eligible to avail ITC in respect of GST charged by the ASP for accommodation facilities provided to student trainees.
AAR, Diagnostic Kits manufactured by the applicant are classifiable under HSN 3002, subject to 5% GST rate: Case of Beacon diagnostics Pvt Ltd, AAR Gujarat Ruling Dated 22nd August 2025. AAR ruled that three specific diagnostic test kits manufactured by Beacon Diagnostics P Ltd. are classified under HSN 3002, a category for pharmaceuticals, and are subject to a 5% GST rate. The ruling stemmed from a dispute over whether the kits should be classified under HSN 3002 (Agglutinating Sera) or HSN 3822 (diagnostic kits and reagents), which carries a higher tax rate.
AAR, Freedeem App Vouchers not supplies, TCS collection under GST required: Case of DSoft Innovations LLP, AAR Gujarat Ruling Dated 22nd August 2025. AAR ruled that Freedeem App is an electronic commerce operator under GST and must obtain mandatory registration. RCM does not apply for restaurant services through the platform. It further clarified that voucher transactions via Freedeem App are neither supply of goods nor services, but TCS collection under section 52 is required.
SC, Supreme Court confirms 5% GST for Flavoured Milk: Case of Union of India vs Heritage Foods Limited, SC Judgement Dated 17th July 2025. The apex court has dismissed the Union of India plea to levy a 12% GST on flavoured milk, upholding the existing 5% rate. The court referenced its prior dismissal of a similar petition (SLP(C) No. 17602 of 2025 on May 9, 2025). The court confirmed that flavoured milk should be classified under Item 04030000, attracting a 5% tax.
HC, Provisional attachment of bank accounts unsustainable once statutory appeal with pre-deposit filed: Case of Benito Operations and Technologies Pvt Ltd vs Dy Excise and Taxation Commissioner, HC Delhi Judgement Dated 18th August 2025. The Court noted that Section 107(7) of CGST Act provides an automatic stay of the recovery of the balance demand upon filing of an appeal with the prescribed pre-deposit. Since the respondent admitted that an appeal was filed and pre-deposit made, there was no justification to maintain the attachment of the petitioner’s bank accounts.
C. Central Excise
No Notification/ Circular during the week.
D. Custom Duty
Customs Duty exemption on Raw Cotton extended till 31st Dec 2025: The notification extends the period of customs duty exemption on imported raw cotton to 31st December 2025, allowing continued duty-free import of raw cotton for an additional three months.
(Link: Customs Notification 36/2025 (T) Dated 28/08/2025)
Customs revises Duty Drawback Rates for Gold & Silver Jewellery/Articles: The notification revises the Assessable Indian Rate (AIR) for specified tariff items in Chapter 71. For tariff item 711301 (Articles of jewellery and parts thereof, made of gold), the duty drawback figure has been increased from Rs 335.50 per gram to Rs 466.76 per gram. Similarly, for tariff items 711302 and 711401 (Articles/ Jewellery of Silver), the figures have been revised from Rs 4468.10 per Kg to Rs 5234.00 per kg. These changes are intended to update the drawback amounts payable to exporters of gold and silver jewellery seeking duty drawback benefits.
(Link: Customs Notification 51/2025 (NT) Dated 25/08/2025)
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. 30th August 2025. The tariff value for crude palm oil is set at USD 1060 per metric ton, while gold and silver have tariff values of USD 1097 per 10 grams and USD 1257 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7463 per metric ton.
(Link: Customs Notification 52/2025 (NT) Dated 29/08/2025)
Validation of BIS registration at time of clearance: The instruction mandate all customs officers to verify the validity of Bureau of Indian Standards (BIS) registration for certain imported goods before clearing them. They must now check the BIS-CRS website to confirm that the registration number is valid. They are also required to verify that the manufacturer’s name, model number, and manufacturing location match the details on the website. This new procedure applies to all items that fall under the Compulsory Registration Order.
(Link: Customs Instructions 27/2025 Dated 26/08/2025)
Customs Instruction regarding duties on gifts and personal imports through Courier and Postal mode: There is widespread public and trade grievances and confusion about the duty structure for gifts and personal imports, as well as the required Know Your Customer (KYC) documentation. CBIC has instructed all Customs Zones to create and publish a Frequently Asked Questions (FAQ) document on their websites. This FAQ must clarify the duty calculation, applicable fees, KYC requirements, and the grievance redressal mechanism.
(Link: Customs Instructions 28/2025 Dated 27/08/2025)
E. Directorate General of Foreign Trade (DGFT)
Extension of Export Obligation period for Advance Authorisation imports: The notification relates to imports with Advance Authorisation (AA) that are subject to mandatory Quality Control Orders (QCOs), specifically those from the Department of Chemicals & Petrochemicals (DCPC). Previously, these businesses had a 180 days (six month) deadline to fulfill their export obligations after the imported goods were cleared. The amendment extends the export obligation period to 18 months.
(Link: DGFT Notification 28/2025 Dated 28/08/2025)
Suspension of SIONs pertaining to food products: The Public Notice suspends the Standard Input Output Norms (SIONs) for a list of specific food products, ranging from various confectionery and biscuits to rice, refined mustard oil, and several starches and food ingredients. Entities that export these products can no longer use the suspended SIONs to determine the quantity of duty-free inputs they can import for export production. Instead exporters can apply for benefits under the Advance Authorisation scheme by utilizing alternative methods to fix their input-output norms. These include either submitting a self-declaration based on specific consumption or getting a fixed norm from the relevant Norms Committee.
(Link: DGFT Public Notice 20/2025 Dated 26/08/2025)
Fixation of new SIONs No. A- 3693 & A-3694 under Chemical and Allied Product: DGFT has introduced two new Standard Input Output Norms (SIONs) under the ‘Chemical and Allied Product’ category. SION A-3693 specifies the raw material quantities for the export of Minoxidil Topical Aerosol 5% (Foam), allowing for the import of 3.06 grams of Minoxidil USP per one number of the finished product. SION A-3694 sets the norms for Benfotiamine, permitting the import of 0.922 kg of Thiamine Hydrochloride (Vitamin B1 HCL) for every 1 kg of the export product..
(Link: DGFT Public Notice 19/2025 Dated 22/08/2025)
Revision of Active SIONs pertaining to food items: It has been observed that some existing SIONs of food items, contain generic input descriptions, while in other cases, the quantities of alternative inputs are not specified clearly. The Norms Committee, considering the sensitivity of food related exports and imports, has decided to review specific SIONs including E-1, E-4, E-5, E-7, E-38, E-46, E-75, E-76, E-77, E-100, E-101, E-102, E-127, E-132, and E-133, along with the general notes associated with them. The comments/ feedback from stakeholders are invited.
(Link: DGFT Trade Notice 11/2025 Dated 27/08/2025)
F. Securities and Exchange Board of India (SEBI)
Extension of timelines for Compliance to Digital Accessibility: The Securities and Exchange Board of India (SEBI) has issued a circular to extend the compliance timelines. This decision was made in response to requests from various Regulated Entities (REs) who needed more time to meet the requirements. The circular extends several compliance deadlines for its Digital Accessibility Circular earlier issued on 31st July 2025. The submission of initial compliance reports and a list of digital platforms are extended to 30th September 2025. The deadline for appointing an accessibility professional as an auditor is extended to 14th December 2025. Audits for digital platforms now have a new deadline of 30th April, 2026. The deadline for remediating audit findings is now 31st July 2026. The circular also updates the reporting authority for Investment Advisers (IAs) and Research Analysts (RAs) from BASL and SEBI, respectively, to BSE Ltd.
(Link: SEBI Circular Dated 29/08/2025)
Technical Clarifications to Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs): The circular addresses various queries from REs and updates the guidelines to ensure a robust and clear implementation of the framework. A key part of the new circular is the introduction of the ‘Principle of Exclusivity’ and ‘Principle of Equivalence’ for entities that are regulated by multiple bodies, such as the SEBI and the Reserve Bank of India. These principles aim to streamline compliance by limiting the scope of the CSCRF to systems exclusively used for SEBI-related activities and by accepting equivalent cybersecurity measures followed under another regulator’s framework. It also updates the categorization thresholds for Portfolio Managers and Merchant Bankers.
(Link: SEBI Circular Dated 28/08/2025)
Relaxation in timeline to submit net worth certificate by Stock Brokers to offer margin trading facility to their clients: The deadlines has been revised for stock brokers to submit their half-yearly net worth certificates. Previously, brokers offering margin trading facilities were required to submit auditor confirmed net worth certificates by 30th April and 31st October for the periods ending 31st March and 30th September, respectively. Under the new rules, the deadline for the certificate as of 31st March has been extended to 31st May, while the deadline for the certificate as of 30th September is now 15th November. This provides brokers with more time to complete the required certifications.
(Link: SEBI Circular Dated 26/08/2025)
G. Ministry of Corporate Affairs (MCA)
Amendment to Companies Incorporation Rules: The key change by this amendment is the substitution of the current Form No. RD-1 with a new version of the form. The Form RD-1 is used for filing application to Central Government (Regional Director) under Incorporation Rules and Compromises, Arrangements and Amalgamations Rules.
(Link: MCA Notification Dated 26/08/2025)
Companies Act, 2013 not applicable in Sikkim: MCA has clarified that the Companies Act 2013, does not currently apply to the state of Sikkim. In Rajya Sabha debate in 2013, the then Corporate Affairs Minister committed to consulting the Sikkim government before implementing the new law. The Ministry has repeatedly sought consent from the Sikkim government to proceed, but a response has yet to be received. Contrary to the assumption that the 1961 Act has been diluted, it remains in effect in the state of Sikkim.
(Link: MCA Reply to Rajya Sabha Question, Dated 19/08/2025)
H. Insolvency and Bankruptcy Board of India (IBBI)
NCLAT, CIRP of Corporate Debtor closed as possession of flats handed over to all homebuyers: Case of Satish Chander Verma vs Grand Reality Pvt Ltd, NCLAT Delhi Judgement Dated 15th July 2025. The appellate tribunal closes the Corporate Insolvency Resolution Process (CIRP) of corporate debtor since construction of flats is completed and possession is handed over to all claimant homebuyers and there is no claimant left.
IBBI reject RTI appeal on GVR Infra Resolution Plan: The appellant sought a copy of the final resolution plan for GVR Infra Projects Ltd., which was approved by the NCLT. The Central Public Information Officer (CPIO) had denied the request, citing that the resolution plan was confidential and exempt from disclosure under Section 8(1)(d) of the RTI Act due to it containing commercial and trade secret information. The First Appellate Authority (FAA) upheld the decision, stating that the resolution plan is confidential in nature and its disclosure could harm the competitive position of a third party.
(Link: IBBI FAA Order Dated 26/08/2025)
H. Reserve Bank of India (RBI)
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 76/2025 Dated 25/08/2025)
J. Miscellaneous
SC, Supreme Court issues directions on delayed High Court Judgments: Case of Ravindra Pratap Shahi vs State of UP, SC Judgement Dated 25th August 2025. The apex court ordered, directing Registrar General of each High Court to furnish to the Chief Justice of the High Court, list of cases where judgment reserved is not pronounced within a time bound manner.
HC, Unilaterally appointment of arbitrator by an interest party is vitiated: Case of Sandeep Mahajan vs Mahindra and Mahindra Financial Services, HC Delhi Dated 10th July 2025. The Court held that any award passed by an arbitrator unilaterally appointed by an interested party is vitiated. Accordingly, ex-parte arbitral award passed is liable to be set aside.
Promotion and Regulation of Online Gaming Act, 2025: The Promotion and Regulation of Online Gaming Act aims to create a structured and secure legal framework for the online gaming sector. It distinguishes between different types of online games, such as e- sports, educational games, and online social games. It prohibits all forms of online money games and associated advertisements, as well as the facilitation of financial transactions related to them. It establishes an Authority on Online Gaming to oversee the sector, provide policy support, and ensure compliance. The Act is intended to protect vulnerable populations from financial and psychological harm, safeguard financial systems, and ensure public order and national security .
(Link: Online Gaming Act Notification Dated 22/08/2025)
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Compiled by:- CMA Yash Paul Bhola, MBA, FCMA. Former Director (Finance), 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)
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