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Dear Reader,
Greetings for the day!!!
We are pleased to share the recent Tax notification and circulars.
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| Direct Tax |
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CBDT amended Income-tax Rules, 1962,w.e.f. 19th May 2025 updating Form ITR-U, by incorporating the changes made in Finance Act 2025, providing option to file updated return upto 36/48 months from the end of relevant AY with additional income tax of 60% / 70%. |
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| Goods And Services Tax |
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Supreme Court Reaffirms Safari Retreats Verdict: Review Dismissed,
ITC on Leased Commercial Property Stands Allowed
On May 20, 2025, the Supreme Court dismissed the government’s review petition in the Safari Retreats case, confirming its earlier decision from October 2024. The Court upheld that businesses constructing commercial properties like malls for leasing can claim Input Tax Credit (ITC) on construction expenses. It clarified that such leasing is a business activity, and the building qualifies as "plant or machinery," thus not hit by the ITC restriction under Section 17(5)(d) of the CGST Act. This brings significant relief to real estate developers, mall owners, and leasing businesses, as it improves credit flow and reduces tax costs. |
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SC Allows ITC for GST Appeal Pre-Deposit: Major Relief for Taxpayers
The Supreme Court, in Yasho Industries Ltd. vs Union of India (May 19, 2025), upheld the use of Input Tax Credit (ITC) from the Electronic Credit Ledger for the mandatory 10% pre-deposit required to file a GST appeal under Section 107(6) of the CGST Act. It ruled that pre-deposit is procedural, not a tax or penalty, and there is no legal restriction mandating cash payment. This decision eases liquidity concerns, particularly for exporters and MSMEs, reduces compliance burden, and may allow refund claims in cases where cash was unnecessarily used. |
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India Designates Raxaul–Birganj Railway Line as Official Land Customs Route
The Government of India, through Notification No. 36/2025-Customs (N.T.) dated 23rd May 2025, has designated the Raxaul (India) – Birganj (Nepal) railway line as a land customs route by amending Notification No. 63/1994-Customs (N.T.). This railway link is now officially recognized as a customs station for cross-border movement of goods under the India–Nepal Treaty of Transit (effective from 1st June 2023). The move aims to streamline customs procedures, enhance trade connectivity, reduce transit costs, and strengthen logistics infrastructure between the two countries. |
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We trust you will find this Journal informative as well as useful.
For any queries, you can write to us at info@akgvg.com.
Disclaimer: This insight is meant for informational purposes only and should not be considered as advice or opinion.
Best Regards!
Knowledge Updates Team
AKGVG & Associates (Chartered Accountants)
DELHI | GURGAON | MUMBAI | AHMEDABAD | BANGALORE | CHENNAI | CHANDIGARH | HYDERABAD
Website: https://www.akgvg.com |
