Tax Mirror

11/10/2025

📢 Important Update for GST & Income Tax Professionals

🔸 GST: Major Overhaul of Rates & Implementation of Amendments

Notification No. 9/2025-Central Tax (Rate), effective 22 September 2025, introduces a revamped GST rate structure, superseding the erstwhile Notification 01/2017.

From 1 October 2025, select amendments in the CGST Act (via Finance Act, 2025) will be brought into force. These amendments include restrictions on input tax credit under certain circumstances, undoing earlier judicial interpretation (e.g. on “buildings as plant”) post-Safari Retreats.

Insurers should note: input tax credit on commissions for individual health & life insurance will be disallowed from 22 September 2025 — the burden shifts to insurers.

Impact:
This is perhaps the most sweeping GST change since inception. Businesses must reevaluate HSN classification, pricing models, and IT systems to align with the new slabs. Also, legal strategies built on earlier judicial precedence (e.g. input tax credit claims) need review in view of the statutory override.

🔹 Income Tax: Relief via Rebate on Section 87A Claims

Circular No. 13/2025 (dated 19 September 2025) issued by CBDT provides relief to assessees who claimed Section 87A rebate on special rate incomes (like STCG on equities) but later received a demand. The Circular allows such taxpayers to retain the benefit, mitigating tax exposures.
The Economic Times

Impact:
This is a welcome relief for many individual investors. It demonstrates CBDT’s sensitivity to equity market participants and aligns more logically with investor expectations. Tax professionals should guide clients to review any demand notices under this context and consider invoking this Circular where applicable.

📌 Takeaway for the TaxMirror Community:

The GST rate revamp and statutory adjustments signal that the tax regime is entering a new structural phase — proactive adaptation is key.

In direct tax domain, look for opportunities to shield taxpayers through the new Circular– especially those in capital markets.

10/10/2025

CBIC has issued Circular No. 251/08/2025 (dated 12 September 2025) clarifying the GST treatment of secondary / post-sale discounts.

Key takeaways:
• When a financial/commercial credit note (i.e. post-sale discount) is issued, it does not alter the original tax liability — hence the recipient need not reverse ITC.

• However, where discounts are part of a tripartite arrangement (manufacturer → dealer → specified end customer), such discounts may be considered consideration for inducement of supply, and must be included in the tax base.

• Promotional or marketing support services provided by dealers may attract GST, but only where there is a distinct agreement and defined consideration.

Impact:
This circular removes uncertainty in everyday trade transactions involving rebates and helps prevent unnecessary ITC reversals. Businesses should revisit their discount schemes and documentation regarding promotional arrangements.

2️⃣ Direct Tax: Audit Report Submission Extended

The CBDT has announced that the due date for furnishing income tax audit reports for FY 2024-25 (AY 2025-26) will be extended from 30 September to 31 October 2025 (applicable for assessees under clause (a) of Explanation 2 to Section 139).

Impact:
This extension provides relief to taxpayers and tax practitioners grappling with revised ITR forms and systemic delays. It gives additional breathing space to complete audits and finalise reports without penalty risk (so long as other conditions are met).

🔎 Takeaway for TaxMirror Audience:

Revisit discount and rebate policies: not all post-sale benefits trigger ITC reversals—structure carefully under the new Circular.

For audit-mandated entities, use the extended timeline judiciously to ensure accurate reporting.

09/10/2025

📢 Update Alert for Direct & Indirect Tax Professionals

1. 🔍 Supreme Court Clarifies Adjournments in GST Adjudication
In MHJ Metaltechs Pvt. Ltd. v. CGST, Delhi (SLP Diary No. 33710/2025, Order dated 8-Sept-2025), the Supreme Court reaffirmed that only up to three adjournments may be granted under Section 75(5) of the CGST Act, 2017. The Court held that denying further adjournments beyond the statutory limit does not, by itself, violate natural justice. Also, supplying partially illegible documents without demonstrable prejudice does not vitiate the proceedings.
TaxGuru

Impact:
This judgement underlines that tax authorities must adhere rigidly to the procedural limit of adjournments. Taxpayers should plan arguments and submissions efficiently—relying on repeated postponements is risky. The decision also discourages litigants from delaying matters on procedural grounds.

2. 📆 CBDT Extends Audit Report Filing Deadline & ITR Due Date

The specified date for filing income tax audit reports for FY 2024-25 (AY 2025-26) has been extended from 30 September to 31 October 2025 (for assessees under clause (a) of Explanation 2 to Sec. 139).
Income Tax Department
+2
Income Tax India
+2

Simultaneously, the due date for filing ITR for non-audit taxpayers has been extended to 15 September 2025.
Press Information Bureau
+3
Press Information Bureau
+3
EY
+3

Impact:
The extension provides breathing room for tax professionals and assessees to finalise audit reports and ITRs — especially beneficial in light of recent revisions to ITR forms and structural changes. However, delays beyond these dates may still attract interest, penalties, and restrictions (e.g. loss carry-forwards).

👉 Takeaway for TaxMirror community:

In GST adjudication matters, procedural limits are not optional — plan wisely, focus on substance, and avoid dilatory tactics.

For FY 2024-25, ensure your audit report and ITR filings comply with the revised timelines to avoid downstream repercussions.

08/10/2025

📢 CBIC’s Big Move for Businesses: 90% Provisional Refunds on IDS Claims!

In a welcome relief to taxpayers, the Central Board of Indirect Taxes & Customs (CBIC) has directed that 90% of refund claims under the Inverted Duty Structure (IDS) shall now be provisionally sanctioned, based on system-driven risk evaluation.

🗓️ Effective Date: 1st October 2025
📄 Instruction No. 06/2025-GST, dated 03.10.2025

💡 Key Highlights:
✅ Faster liquidity for businesses suffering from IDS accumulation.
✅ System-based risk assessment — reducing officer discretion.
✅ Final scrutiny will continue as per law, ensuring compliance integrity.

This reform aims to ease working-capital blockages and improve refund turnaround across manufacturing and export sectors.

🧾 Professional Insight:
A significant step towards “ease of doing business” — but businesses must ensure robust input documentation to avoid reversals at the final stage.

🔗 Source: CBIC Instruction No. 06/2025-GST (dated 03.10.2025)

27/09/2025

“🚨 Major Update from Jodhpur 🚨
CBI Court sentences Chief Commissioner of Income Tax (CCIT) and Income Tax Officer (ITO) to 4 years imprisonment in a bribery case. 💰
Both fined ₹1.10 lakh each.
Justice served ✅

”

04/09/2025

💡 GST is changing again – but this time, towards simplification.

The latest GST Council meeting has:
🔹 Reduced rates on essentials like milk, agri equipment, medicines.
🔹 Streamlined tax on automobiles & services.
🔹 Kept the Input Tax Credit system intact (a huge win for businesses).

This isn’t just about tax slabs.
It’s about making life a little easier for businesses and people alike.

👉 How do you see this change impacting your daily life — directly or indirectly?

04/09/2025

📢 GST Council’s 56th Meeting: Key Takeaways 📢

✨ Effective 22 Sept 2025 ✨

✔️ Lower GST on milk, medicines, agri tools, bicycles
✔️ Rationalised tax on cars, appliances, services
✔️ ITC preserved = healthier cash flow

For professionals: 📊 less confusion, more clarity.
For households: 🏠 essentials at lower cost.

💬 Your turn: Do you think these changes will truly reduce disputes & make GST easier to handle?

04/09/2025

From 22nd Sept 2025, new GST rates kick in!

✅ Essentials like milk, medicines & bicycles – cheaper
✅ Agricultural machinery – now more affordable
✅ Automobiles & home appliances – rationalised rates
✅ Input Tax Credit chain – protected

👉 For businesses: smoother compliance & better cash flow.
👉 For society: a balance between affordability & equity.

💬 What do you think — will these changes make GST simpler in practice?

29/10/2024

DUE DATE OF ROC EXTENDED.......

09/10/2024

We Lost Him 😔

24/06/2024