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  WEEKLY TAX UPDATES  

Dear Reader,
Greetings for the day!!!
We are pleased to share the recent Tax notification and circulars.

Direct Tax
S.no Description
1
CBDT extended the deadline for filing Tax Audit Reports for Assessee referred to in clause (a) of Explanation 2 to 139(1) of the Act, from 30th September 2025 to 31st October 2024.
 
Circular No. 14/2025 Dtd. 25.09.2025 Press Release Dtd. 25.09.2025
2
CBDT provides recognition to “Real Estate Regulatory Authority’ Rajasthan, Jaipur (PAN: AAAGR0430E)”, for tax exemption u/s 10(46) of the Income tax Act.
 
Notification No. 148/2025 Dtd. 22.09.2025
3
CBDT provides recognition to “High Court Legal Services Committee’ (PAN AAAAH6532R)”,for tax exemption u/s 10(46) of the Income tax Act.
 
Notification No. 149/2025 Dtd. 22.09.2025
Goods And Services Tax
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1
Withdrawal of Clarification on Post-Supply Discounts - Circular 253/10/2025
The CBIC, by Circular No. 253/10/2025 (1 Oct 2025), has withdrawn its earlier Circular 212/6/2024 (26 June 2024) which prescribed a specific documentary procedure for suppliers to prove compliance with Section 15(3)(b)(ii) regarding post-supply discounts. Going forward, suppliers are no longer required to follow that prescribed evidentiary procedure; instead, they merely need to satisfy the legal conditions under Section 15(3)(b)(ii) (i.e. discount must be agreed pre-supply/invoice-linked, and the recipient must reverse corresponding ITC), but without the rigid format specified earlier. The CBIC has directed all field formations to apply this uniformly, thereby reducing procedural burdens while retaining substantive safeguards under law.
 
Access the official document
2
CBIC Introduces Risk-Based Provisional Refund System
The CBIC has implemented a risk-based provisional refund mechanism under Instruction No. 06/2025-GST, effective from October 1, 2025. This initiative aims to expedite the GSTrefund process and enhance liquidity for businesses.Under the new system, refund applications categorized as "low-risk" by the GST system will have 90% of the claimed amount sanctioned provisionally without detailed scrutiny. Applications not marked as low-risk will undergo detailed verification before any refund is sanctioned.
The instruction also extends this provisional refund facility to claims under the Inverted Duty Structure, where the tax paid on inputs exceeds the tax on outputs. This extension is an interim measure pending legislative amendments to Section 54(6) of the CGST Act, 2017.This reform is expected to streamline the refund process, reduce delays, and improve cash flow for businesses, thereby contributing to a more efficient and business-friendly GST regime.
 
Access the official instruction here
3
CBIC Clarifies GST Registration Requirements for Cold Storage and Warehouse Operations
The CBIC issued a circular on 25th September 2025, clarifying that businesses storing goods in cold storages or warehouses in another state must obtain a separate Goods and Services Tax (GST) registration in that state if they make taxable supplies from there. This applies even if the facility is operated by a third party. Establishments in different states under the same Permanent Account Number (PAN) are treated as distinct persons under Section 25(4) of the CGST Act, meaning intra-company transfers between such establishments require proper documentation, including tax invoices and GST payment. Businesses must also maintain accurate stock registers and related documents at each location to ensure compliance with GST regulations.
 
Read the official circular
4
GST Appellate Tribunal (GSTAT): A New Era in GST Dispute Resolution
The Goods and Services Tax Appellate Tribunal (GSTAT) has been officially launched to streamline the GST dispute resolution process. Previously, appeals concluded at the Appellate Authority, with further escalation directly to High Courts, leading to significant delays and backlog. GSTAT introduces an intermediate appellate tier, enabling consistent and specialized adjudication, expedited dispute resolution, and end-to-end digital filing. The notified framework includes Notification No. 13/2025 – Central Tax (17 Sept 2025), which introduces Rule 110A for Single-Member Benches, adds Form APL-02A (Acknowledgement) and APL-04A (Order Summary), and updates existing forms for smoother filing.
Additionally, Notification S.O. 4220(E) - 17 Sept 2025 prescribes timelines for filing appeals: appeals for orders passed before 1 April 2026 must be filed by 30 June 2026, and appeals for orders after 1 April 2026 must be filed within 3 months. All appeals are to be filed only through the GSTAT Portal, with a staggered rollout allowing gradual onboarding of taxpayers until 30 June 2026. This reform transforms the GST appeal landscape - digital, time-bound, and accessible - paving the way for a more efficient and equitable tax dispute mechanism under GST 2.0
 
Access official order
5
GSTN Advisory : Key Updates on ITC Auto-Population & Credit Note Handling
The Goods and Services Tax Network (GSTN) has issued an advisory on 8 October 2025, confirming that the auto-population of Input Tax Credit (ITC) from GSTR-2B to GSTR-3B remains unchanged under the Invoice Management System (IMS). GSTR-2B will continue to be auto-generated on the 14th of each month, and taxpayers can take actions in IMS even after its generation, with the option to regenerate GSTR-2B before filing GSTR-3B.
Effective from the October 2025 tax period, recipients have the option to keep credit notes pending for a specified period. Upon acceptance, recipients can manually adjust ITC reversals to the extent of its availment. Taxpayers are advised to rely on verified communications from GSTN and the Central Board of Indirect Taxes and Customs (CBIC) for accurate information.
 
Access the official advisory
 
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)

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