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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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On 11thAugust 2025, Lok Sabha passed the newly introduced The Income-Tax(No.2) Bill, 2025within 3 minutes from its introduction. The said Act would replace the six-decade-old Income-Tax Act, 1961, with effect from 1stApril 2026.
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W.e.f. 1st September 2025, CBDT amended Form No. 7 for notice of demand, by replacing “assessment year” with “assessment yearor the block period,” for aligning the form for block assessments.
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CBDT provides recognition to “Parambikulam Tiger Conservation Foundation’ (PAN AADTP9665M)” for tax exemption u/s 10(46) of the Income tax Act, outlining specific incomes and conditions for its applicability.
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CBDT provides recognition to “Uttarakhand Pollution Control Board” (PAN:AAALU0160D)for tax exemption u/s 10(46A)(b) of the Income tax Act.
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| Goods And Services Tax |
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PM Modi Unveils Next-Gen GST Reforms to Simplify, Stabilise and Strengthen Economy:
On Independence Day 2025, Prime Minister Narendra Modi announced the next phase of GST reforms, calling it one of India’s biggest economic transformations. The new framework rests on three pillars—structural reforms to fix inverted duty structures and reduce disputes, rate rationalisation with fewer slabs and lower tax on essentials, and ease of living through seamless registration, pre-filled returns, and faster refunds. Aimed at making GST simple, stable, and transparent, the reforms are expected to benefit the common man, farmers, women, students, the middle class, and MSMEs, while boosting business confidence and growth. The proposal has been sent to the GoM for state consensus, with rollout targeted this year, marking a step towards Atmanirbhar Bharat and inclusive development.
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Gujarat HC Quashes GST Demand Over Turnover Mismatch, Cites Violation of Natural Justice:
The Gujarat High Court in MC Bauchemie India Pvt. Ltd. &Anr. vs Union of India & Ors. (2025-VIL-776-GUJ) quashed a GST demand of ₹27.68 lakh raised under Section 73 of the CGST Act. The Court held that turnover mismatch between e-way bills and GSTR-9, without evidence of fraud or suppression, cannot justify demand. It further ruled that denial of personal hearing and lack of proper reasoning violated principles of natural justice, and that the department acted beyond jurisdiction. Consequently, the Show Cause Notice, Order-in-Original, rectification rejection, and appeal dismissal were all set aside.
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Kerala Launches India’s First Faceless GST Adjudication System:
Kerala has become the first state in India to roll out faceless adjudication under GST, effective 1st August 2025. The new system enables end-to-end online adjudication, including issuance of SCNs, filing of replies, virtual hearings, and digital final orders, eliminating the need to visit tax offices.Modelled on the faceless income tax system, it aims to ensure transparency, faster resolution, uniform decision-making, and hassle-free compliance, marking a major step towards taxpayer-friendly governance and ease of doing business.
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