The past week saw significant notifications and rulings across various regulatory bodies. The Income Tax department notified the Cost Inflation Index for FY 2025-26 at 376 and granted income exemptions to the Karnataka State Pollution Control Board, Bengaluru. Clarifications were issued regarding interest waiver for non-deduction/collection/payment of TDS/TCS, confirming that designated authorities can issue waiver orders from March 28, 2025, and applications can be filed within one year from the end of the relevant financial year. In GST, the AAAR Tamil Nadu denied school bus GST exemption, while the Delhi High Court ruled that GST refunds cannot be denied if a binding High Court order exists without a stay or appeal. The Rajasthan High Court prima facie questioned the legal authority of GST Circular No. 3/3/2017 regarding delegation of summons power, and the Himachal Pradesh High Court stated that GST penalty without intent to evade tax is arbitrary.
For Customs Duty, Air Canada was added as a designated airline for duty exemptions on specific imported goods. Tariff values for edible oils, brass scrap, areca nut, gold, and silver were fixed effective July 1, 2025, and countervailing duty was imposed on continuous cast copper wire rods from several Southeast Asian countries for five years. Restrictions were placed on importing certain textile items from Bangladesh, limiting entry to Nhava Sheva Seaport, and importers of plastic raw materials are now required to register on the Centralized EPR Portal. The DGFT extended quantitative restrictions on Low Ash Metallurgical Coke imports and Minimum Import Price (MIP) on Soda Ash until December 31, 2025, also detailing the application procedure for coke imports.
SEBI extended the Cybersecurity Framework compliance deadline to August 31, 2025, for most regulated entities, and introduced a special six-month window for re-lodging physical share transfer requests, mandating dematerialized issuance. Draft circulars were issued for public feedback on revising capacity norms for Market Infrastructure Institutions with Commodity Derivative Segments, reviewing the framework for private listed InvIT conversion to public InvIT, and establishing an Electronic Book Provider (EBP) platform for Not-for-Profit Organizations on the Social Stock Exchange. Additionally, SEBI allowed the use of NPCI’s e-KYC Setu for Aadhaar-based e-KYC and mandated a Common Contract Note with Single Volume Weighted Average Price (VWAP) effective June 27, 2025.
The Ministry of Corporate Affairs (MCA) amended Companies (Restriction on number of layers) Rules and Companies (Incorporation) Rules by substituting existing forms. The Insolvency and Bankruptcy Board of India (IBBI) saw the Supreme Court halt liquidation proceedings in the JSW Steel case. NCLAT rulings included dismissing private sales to related parties as contrary to liquidation regulations, upholding the dismissal of a restoration application where a personal guarantor misused moratorium, confirming resolution plans that do not discriminate based on creditor type, and reaffirming the Resolution Professional’s duty to possess corporate debtor assets.
Finally, the RBI issued new directions prohibiting pre-payment charges on floating rate loans to individuals for non-business purposes and for individuals and MSEs for business purposes from most regulated entities. It also revised trading hours for Call Money and Repo Markets and amended FEMA regulations to include certain marine vessels under export of goods and services. Miscellaneous High Court judgments upheld acquittals under the Negotiable Instruments Act when the applicant’s financial capacity to lend was not proven.
Notifications & Circulars issued during week (30th – 6th July 2025)
A. Income Tax
Cost Inflation Index for FY 2025-26 notified: The Cost Inflation Index for 2025-26 has been notified at 376 (for 2024-25 at 363) with base year 2001-02 at 100. The notification inserts a new entry in previous notification dated 5th June 2017 at serial number ‘25’ with the corresponding entry ‘2025-26’ and ‘376’ to the table.
(Link: Income tax Notification 70/2025 Dated 01/07/2025)
Exemptions to Karnataka State Pollution Control Board, Bengaluru: Karnataka State Pollution Control Board, Bengaluru, a Board constituted by the State Government of Karnataka under Water (Prevention and Control of Pollution) Act 1974, has been notified under section 10(46) for exemption on its income arising from consent fees, water and air analysis charges, environmental compensation fees, any other fees, grants/ subsidy from central/ state/ CPCB, miscellaneous income incidental to core activities and interest on bank deposits.
(Link: Income tax Notification 71/2025 Dated 02/07/2025)
Clarifications on Interest Waiver for non-deduction/ non-collection/ non-payment of TDS/ TCS: The CBDT has clarified pertaining to the waiver of interest levied under Section 201(1A)(ii) (for non-deduction/payment of TDS) and Section 206C(7) (for non- collection/payment of TCS) of the Income Tax Act, that designated authorities (CCIT/DGIT/Pr.CCIT) are empowered to pass waiver orders from the date i.e. 28th March 2025, the Circular No. 5/2025 was issued. It confirms that applications for interest waiver can be entertained for interest charged even before the issuance said circular. The applications must adhere to the existing timeline, allowing taxpayers to apply within one year from the end of the financial year for which the interest was charged. Thus, interest pertaining to FY 2023-24 can have a waiver application filed by March 31, 2025.
(Link: Income tax Circular 08/2025 Dated 01/07/2025)
B. GST
AAAR, School bus GST exemption denied: Case of Batcha Noorjahan, AAAR Tamil Nadu Ruling Dated 23rd June 2025. The applicant, engaged in the business of transporting school students, contended that their services should qualify for GST exemption as they were essential to educational institutions. AAR had earlier ruled that the services by way of transportation of students and staff cannot be considered as services provided to school (educational institution) and not exempt. AAAR upheld the ruling.
HC, GST Refund cannot be denied by disregarding binding HC order where no stay or appeal is pending: Case of Thales India Private Limited vs Assistant Commissioner CGST, HC Delhi Judgement Dated 27th May 2025. The writ petition seek implementation of a refund of Rs 8,99,61,147 pursuant to the HC judgment dated 7th January 2025. In that case, it was held that, in the absence of an invoice for services received from its foreign affiliate (the overseas group entity), the value of such services would be “deemed” to be nil, as per the second proviso to Rule 28 of CGST Rules. Following the above decision, the Petitioner filed a refund claim. However, the same was rejected the order stated that the refund could not be allowed because the Department did not accept the judgement of the Delhi High Court in Metal One Corporation India Pvt. Ltd [W.P.(C) 14945/2023], which had been relied on in the Petitioner’s earlier case.
— HC held that the GST Department cannot refuse to process refund on the ground that it does not accept a binding High Court decision, especially when no stay or appeal exists. The judgment in Metal One Corporation (supra) not being accepted by the Department could not be a valid ground to deny refund, especially when the judgment in the petitioner’s own case had attained finality. It further directed that, the refund be processed and credited to the Petitioner within two months.
HC, GST Circular No. 3/3/2017 Prima Facie lacks legal authority: Case of Mohit Kirana Store vs CBIC, HC Rajasthan Judgement Dated 1st July 2025. HC has upheld its interim stay order regarding the delegation of power by Board to issue summons under the CGST Act. The petitioner highlighted that the power of delegation, as per Section 2(91) of the CGST Act, lies with the Commissioner within the Board, not the Board itself.
HC, GST penalty without intent to evade tax is arbitrary: Case of Kunal Aluminium Company vs State of HP, HC Himachal Pradesh Judgement Dated 26th June 2025. The petitioner vehicle carrying aluminium scrap was intercepted due to non-production of an e-way bill. Although IGST had already been paid on the goods at the time of clearance from Customs, authorities-imposed tax and penalty under Sections 129 and 130 of CGST Act, alleging evasion. The goods were released upon furnishing bank guarantee for the disputed amount. The Court held that imposition of penalty under Section 129 cannot be sustained in the absence of intent to evade tax. The petitioner had already paid all applicable customs and IGST duties at the port, and generated the e-way bill post-detention. The court quashed the impugned order.
B. Central Excise
No Notifications/ Circular during the week.
D. Custom Duty
Air Canada added as designated airline under notification 130/2010: The notification adds “Air Canada” as the designated airline in earlier notification 130/2010 dated 23rd December 2010, which exempts the goods of specified description, when imported into India by a designated airline from custom duty and additional duty. The goods include Printed ticket stocks, Airway bills, Any printed material which bears the insignia of the importing airline printed thereon including baggage tags, Publicity material for distribution free of charge.
(Link: Custom Notification 32/2025 (T) Dated 30/06/2025)
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. 1st July 2025. The tariff value for crude palm oil is set at USD 1006 per metric ton, while gold and silver have tariff values of USD 1054 per 10 grams and USD 1164 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 6970 per metric ton.
(Link: Custom Notification 44/2025 (NT) Dated 30/06/2025)
Adjudicating Authority appointed for customs cases of MB Crusher India: The notification appoints a common adjudicating authority for show cause notices issued to M/s MB Crusher India Pvt Ltd. The designated Assistant Commissioner of Customs, Group-V, NS-V, JNCH, will now handle the adjudication for all listed show cause notices.
(Link: Custom Notification 45/2025 (NT) Dated 30/06/2025)
Counter-veiling Duty on Continuous Cast Copper Wire Rods from Indonesia, Malaysia, Thailand and Vietnam: Counter-veiling Duty has been imposed on imports of Continuous Cast Copper Wire Rods originating in or exported from Indonesia, Malaysia, Thailand and Vietnam, and imported into India. The counter-veiling duty shall be effective for a period of five years.
(Link: Custom Notification 06/2025 (CVD) Dated 03/07/2025)
Port restriction on import of certain goods from Bangladesh to India: The new regulation prohibits the import of specific textile items, including flax tow and waste, jute and other textile bast fibres (raw or retted), various jute and flax yarns, and woven fabrics of flax or unbleached jute, from Bangladesh through any land port on the India- Bangladesh border. Instead, these goods are now only permitted for import into India via the Nhava Sheva Seaport. These restrictions do not apply to Bangladeshi exports transiting through India to Nepal or Bhutan, but re-export of these specific goods from Nepal or Bhutan back to India is not permitted. The instruction directs customs officers to be aware of these new import regulations.
(Link: Custom Instructions 20/2025 Dated 01/07/2025)
Registration of Importers of Plastic Raw Material on Centralized EPR Portal: As per the provisions of Plastic Waste Management Rules, Importer means “a person who imports for commercial use, any plastic packaging or any commodity with plastic packaging or carry bags or plastic sheets or like material, or plastic raw material including in the form of resin or pellets, or intermediate material to be used for manufacturing plastic packaging such as films or preforms” and all such importers are required to be registered on the EPR Plastic Portal as per Section 6 of the EPR Guidelines. The instruction directs sensitisation of officers to be aware of these new provisions.
(Link: Custom Instructions No. 21/2025 Dated 02/07/2025)
E. Directorate General of Foreign Trade (DGFT)
Continuation of imposition of Quantitative Restriction on import of Low Ash Metallurgical Coke: DGFT has extended the existing quantitative restrictions (QR) on the import of Low Ash Metallurgical Coke for an additional six months, to December 31, 2025. The restrictions apply to specific HS Codes and include country-wise quotas for imports. For the extended period, a total of 14,27,166 Metric Tons (MT) is permitted.
(Link: DGFT Notification 22/2025 Dated 30/06/2025)
Extension in Minimum Import Price (MIP) condition on import of Soda Ash: The extension applies specifically to three HS codes: 28362010, 28362020, and 28362090. The MIP is set at ₹20,108 per metric tonne and will now remain in effect for an additional six months to 31st December 2025. It aims to regulate the import of Soda Ash by maintaining a price threshold, thereby supporting domestic trade interests.
(Link: DGFT Notification 23/2025 Dated 30/06/2025)
Procedure for filing application for obtaining Import Authorisation for import of Low Ash Metallurgical Coke: The importers can submit online applications on the DGFT website for imports under specific ITC(HS) Codes, with a limit of three applications per importer, each specifying a single supplier country. The applicants need to provide specific information and documents, including steel manufacturing capacity, monthly Met-Coke requirements, in-house production, and existing stock. A Special Exim Facilitation Committee will review applications and allocate quantities. The import utilization will be monitored and allocations may be adjusted based on actual imports.
(Link: DGFT Trade Notice 07/2025 Dated 02/07/2025)
F. Securities and Exchange Board of India (SEBI)
Extension of Cybersecurity Framework compliance deadline: SEBI has announced extended compliance deadline by two months, moving it to 31st August 2025, for the adoption and implementation of its Cybersecurity and Cyber Resilience Framework (CSCRF). The framework was originally issued on 20th August 2024. The extension applies to all regulated entities except Market Infrastructure Institutions (MIIs), KYC Registration Agencies (KRAs), and Qualified Registrars to an Issue and Share Transfer Agents (QRTAs).
(Link: SEBI Circular Dated 30/06/2025)
Special Window for re-lodgement of transfer requests of Physical Shares: A special six-month window for investors to re-lodge requests for the transfer of physical shares has been introduced. The window opens on 7th July 2025, and closes on 6th January 2026. During this period, all re- lodged securities will only be issued in dematerialized form, and the standard process for transfer-cum-demat requests will be followed.
(Link: SEBI Circular Dated 02/07/2025)
Draft Circular, Revision in guidelines for capacity norms for Market Infrastructure Institutions with Commodity Derivative Segment: The commodity exchanges maintain a system capacity of at least four times their peak load, at present. SEBI now proposes reducing this to two times (2x) the projected peak load. This change aims to align capacity norms for commodity exchanges with those already in place for equity exchanges. Also, the revised guidelines will now extend to Clearing Corporations (CCs) with commodity derivatives segments, aiming to create uniformity across the market. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 30/06/2025)
Draft Circular, Review of framework for conversion of Private Listed InvIT into Public InvIT: At present, sponsors are subject to an 18-month lock-in on minimum contributions and a one-year lock-in on excess units. Non-sponsor unitholders face a one-year lock-in. SEBI proposes to remove the lock-in provisions for both sponsor and non-sponsor unitholders during conversion. Additionally, SEBI suggests that the disclosure and procedural requirements for public issues made for conversion should align with those for a follow-on offer, rather than an initial offer. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 01/07/2025)
Draft Circular for Electronic Book Provider (EBP) platform for issuance of instruments by Not for Profit Organizations (NPO) on Social Stock Exchange (SSE): The proposed SSE-EBP platform aims to provide a standardised mechanism for fundraising, outlining eligible participants (QIBs and non-QIBs excluding foreign entities), issue size thresholds (single or shelf issues of ₹50 lakh or more), and detailed processes for bidding, allotment, and settlement. It also specifies obligations for issuers, participants, Registrars to an Issue (RTAs), and the SSE-EBPs themselves, including KYC verification, anonymous bidding, pay-in through escrow accounts, and consequences for defaults or withdrawals.
The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 03/07/2025)
Use of NPCI e-KYC Setu allowed for Aadhaar KYC: SEBI has permitted registered intermediaries in the securities market to use the ‘e-KYC Setu System’ developed by the National Payments Corporation of India (NPCI) for Aadhaar- based electronic Know Your Customer (e- KYC) authentication. Previously, intermediaries relied on e-KYC services provided by the Unique Identification Authority of India (UIDAI), either through the KYC User Agency (KUA/Sub-KUA) mechanism or via Digilocker. The new facility offers an additional option, enabling digital KYC through the NPCI- UIDAI integrated system.
(Link: SEBI Press Release Dated 30/06/2025)
Contract Note with Single Volume Weighted Average Price (VWAP): The Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) has been made mandatory, effective 27th June 2025. This reform addresses previous complexities where separate trade confirmations were required for each exchange, leading to intricate reconciliation, settlement, and regulatory compliance challenges. The new system is designed to streamline post-trade reporting by consolidating trades across multiple exchanges into a single, harmonized document.
(Link: SEBI Press Release Dated 02/07/2025)
G. Ministry of Corporate Affairs (MCA)
Amendment to Companies Restriction on number of layers Rules: The key change is the substitution of Form CRL-1 in the Annexure of the Companies (Restriction on number of layers) Rules 2017, with a new form. It aims to modify the reporting requirements related to the number of layers of subsidiaries that companies can have, for required adjustments to corporate governance.
(MCA Notification Dated 27/06/2025)
Amendment to Companies Incorporation Rules: The key change is the substitution of the existing Form INC-22A within the Companies (Incorporation) Rules 2014, with a new e-Form.
(MCA Notification Dated 27/06/2025)
H. Insolvency and Bankruptcy Board of India (IBBI)
SC halts liquidation proceedings in NCLT on case of JSW Steel: Case of JSW Steel Limited vs Sanjay Singhal, SC Order Dated 26th May 2025. The apex court ordered a status quo on the liquidation proceedings of Bhushan Power and Steel Ltd (BPSL), granting relief to JSW Steel Ltd and allowing the company to file a review petition against the court’s 2 May verdict that had quashed the resolution plan. JSW Steel’s ₹19,300 crore resolution plan was the highest bid received and was approved by the NCLT in September 2019, and later upheld by the NCLAT in February 2020.
— The apex court had earlier set aside the resolution plan on grounds of non-compliance with key provisions of the Insolvency and Bankruptcy Code, particularly the failure to adhere strictly to the plan’s approved timeline. The court’s ruling was not only a setback for JSW Steel but also came as a shock to India’s corporate ecosystem, with companies and law firms scrambling to understand the implications for insolvency proceedings. Investors, lenders, and acquirers were apprehensive about retrospective scrutiny of previously concluded deals, potentially undermining commercial confidence.
NCLAT, Private sale to related party dismissed as contrary to Regulation 33 of Liquidation Regulations: Case of Bhavik Bhimjyani vd Uday Vinodchandra, NCLAT Judgement Dated 30th May 2025. The appellant tribunal held that proposed sale in the form of private sale to related party being not in conformity with Regulation 33 of IBBI (Liquidation Regulations), 2016 hence order of Adjudication Authority is set aside. Moreover, for a transparent and unbiased liquidation process, a new Liquidator should be appointed immediately. New Liquidator should ensure that the whole process of liquidation is taken up afresh starting with public auction or private as per law.
NCLAT, Restoration application rightly dismissed as undue advantage of moratorium taken by personal guarantor: Case of Suprio Ghosh vs Bank of Maharashtra, NCLAT Delhi Judgement Dated 30th May 2025. The appellant tribunal held that restoration application rightly dismissed as personal guarantor was trying to abuse the process of law by misusing the moratorium available to him under section 96 of IBC.
NCLAT, Resolution plan implementable as it does not discriminate based on type of creditors: Case of Shankar Mukherjee vs Ravi Sethia, NCLAT Delhi Judgement Dated 14th May 2025. The appellant tribunal held that the Resolution Plan does not discriminate based on the type of creditors to give preference to secured creditors both having first charge or having residual charges thus resolution plan is implementable and in exercise of commercial wisdom of CoC. The appeal is rejected being devoid of merits.
NCLAT, Resolution Professional is duty bound to take steps for possession of assets owned by Corporate Debtor: Case of Harish Raghavji Patel vs Ajit Gyanchand Jain, NCLAT Delhi Judgement Dated 15th May 2025. The appellant tribunal held that section 18(1)(f) of IBC enables Resolution Professional to take steps for taking possession of assets owned by Corporate Debtor. The appeal is dismissed.
I. Reserve Bank of India (RBI)
RBI Pre-payment Charges on Loans Directions 2025: The new directions provide that no pre-payment charges can be levied on floating rate loans granted to individuals for non-business purposes. For floating rate loans given to individuals and MSEs for business purposes, most commercial banks, certain urban co-operative banks, NBFCs, and All India Financial Institutions are prohibited from levying such charges. Smaller financial institutions like Small Finance Banks and Regional Rural Banks are exempt from levying pre-payment charges on business loans up to ₹50 lakh. For other loan types, pre-payment charges must align with the regulated entity’s approved policy and be clearly disclosed in loan documents.
(Link: RBI Notification 64/2025 Dated 02/07/2025)
RBI revises trading hours for Call Money, Repo Markets: The operating hours for the call money market will be extended to 7:00 PM, adjusting the new timings to 9:00 AM–7:00 PM effective 1st July 2025. The trading hours for market repo and Tri-Party Repo (TREP) will be extended to 4:00 PM, revising the schedule to 9:00 AM–4:00 PM effective 1st August 2025. The trading hours for the government securities market, foreign exchange market, and interest rate derivatives market will remain unchanged.
(Link: RBI Press Release Dated 25/06/2025)
Amendment to FEMA Export of Goods & Services Regulations: A new sub-regulation 4(ca) has been inserted, which now covers “Tugs or Tug Boats, Dredgers and Vessels used for providing offshore support services, subject to their re-import into India.” It broadens the scope of goods and services considered for export under these regulations, specifically addressing certain marine vessels.
(Link: RBI Notification Dated 24/06/2025)
J. Miscellaneous
HC, Acquittal under Negotiable Instrument Act upheld as applicant’s financial capacity not proved: Case of Bhavubha Bechar Sinh Chavda vs State of Gujarat, HC Gujarat Judgement Dated 19th June 2025. HC held that order of acquittal by Trial Court under Negotiable Instrument Act, 1881 upheld as applicant failed to prove its financial capacity of giving an amount of loan to accused. The accused had created a reasonable doubt and the applicant has failed to produce reliable and cogent evidence on record about the amount of cheque being the legally recoverable debt from the accused and has not proved his case beyond reasonable doubt. The Trial Court order of acquittal is just and proper and does not require any interference.
HC, Accused entitled to acquittal as financial capacity of complainant not established: Case of Bharat Bhushan vs Umesh Kumar, HC Himachal Pradesh Judgement Dated 19th June 2025. HC held that when the financial capacity of the complainant is not established, the accused is entitled to acquittal. Accordingly, order of Trial Court upheld and appeal of complainant dismissed.
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Compiled by:- CMA Yash Paul Bhola, MBA, FCMA, and former Director (Finance) at 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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