Executive Summary
Income Tax
- CBDT extends specified date for filing of various reports of audit for the assessment year 2025-26
- Section 220, read with section 119 of the Income-tax Act, 1961 – waiver of interest payable under section 220(2) due to late payment of demand
Goods And Service Tax (GST)
- Circular No. 251/08/2025 – GST [F. No CBIC – 0001/3/2025 – GS – GST]: Clarification on various doubts related to treatment of secondary or post-sale discounts under GST, dated 12-09-2025
- Notification No. 13/2025-Central Tax, dated 17-09-2025, makes amendments to CGST Rules 2025 (rules 31A, 39, 91, 110, 111, 113), inserts Rule 110A, updates Forms GSTR-9 & 9C, adds Forms GST APL-02A & 04A, and substitutes Forms GST APL-05, 06 & 07
- Notification S.O. 4220(E), dated 17-09-2025, extends the time to file GST Tribunal appeals till 30-06-2026 for orders communicated before 01-04-2026, and sets a 3-month limit for orders communicated after 01-04-2026
- Press release, dated 24-09-2025: Union minister of finance and corporate affairs Smt. Nirmala Sitharaman launches goods and services tax appellate tribunal in New Delhi
Companies Act 2013/ Other Laws
- Fast-track mergers: Expansion of scope
- Companies (Incorporation) Second Amendment Rules, 2025
- MCA extends last date for filing DIR-3 KYC and DIR-3-KYC-WEB
- Ease of Doing Investment – Smooth Transmission of Securities from Nominee to Legal Heir
- Investor Protection and Education Fund (IPEF) Regulations, 2025
- Share Based Employee Benefits (SBEB) Regulations
- Compliance Guidelines for Digital Accessibility Circular ‘Rights of Persons with Act, 2016 and rules made thereunder
A. CBDT EXTENDS SPECIFIED DATE FOR FILING OF VARIOUS REPORTS OF AUDIT FOR THE ASSESSMENT YEAR 2025-26 [25-09-2025]
- The ‘specified date’ of furnishing of the report of audit under any provision of the Income-tax Act, 1961, for the Previous Year 2024-25 (Assessment Year 2025-26), in the case of assessee referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, is 30th September 2025. However, keeping in view representations by Tax practitioners and submissions before Hon’ble Courts, the ‘specified date’ is extended to 31st October, 2025.
B. SECTION 220, READ WITH SECTION 119 OF THE INCOME-TAX ACT, 1961 – WAIVER OF INTEREST PAYBLE UNDER SECTION 220(2) DUE TO LATE PAYMENT OF DEMAND [19-09-2025]
- The provisions of section 115BAC(1A) of the Income-tax Act, 1961 are subject to other provisions of Chapter XII. Incomes chargeable to tax at special rates under Chapter XII are excluded while determining tax liability under section 115BAC(1A). Clause (b) proviso to section 87A applies to incomes chargeable under section 115BAC(1A).
- In certain cases, returns were processed allowing rebate under section 87A erroneously on incomes taxed at special rates; rectifications to disallow rebate will cause demands to be raised. Payment delays will attract interest under section 220(2).
- The Board, under section 119, directs waiver of interest under section 220(2) if payment of demands raised by rectification orders is made on or before 31.12.2025. Failure to pay will attract interest from next day after expiry of this period.
A. CIRCULAR NO. 251/08/2025 – GST [F. NO CBIC – 0001/3/2025 – GS – GST]: CLARIFICATION ON VARIOUS DOUBTS RELATED TO TREATMENT OF SECONDARY OR POST-SALE DISCOUNTS UNDER GST, DATED 12-09-2025
Clarifications on Secondary / Post-Sale Discounts (u/s 168 of CGST Act, 2017)
ITC on Financial/Commercial Credit Notes
Recipients eligible for full ITC even if supplier issues financial/commercial credit notes
Suppliers cannot reduce tax liability; recipient need not reverse ITC
Post-Sale Discounts – Treatment as Consideration
Normally, discount is not considered for dealer’s sale to end customer (principal-to-principal basis)
If manufacturer has agreement with end customer (dealer passing discount), discount is a reward and part of consideration
Post-Sale Discounts vs. Promotional Services
Discount reduces sale price; not treated as payment for promotional services
GST applies only if dealer provides specific promotional services with separate consideration
Action Points
Trade notices to be issued for uniformity
Difficulties, if any, to be reported to Board
B. NOTIFICATION NO. 13/2025-CENTRAL TAX, DATED 17-09-2025
| Rule / Form | Old Provision | New / Amended Provision (2025) | Effective From |
|---|---|---|---|
| Short title & commencement | N/A | Called CGST (Third Amendment) Rules, 2025 | 22nd Sept 2025 |
| Rule 31A (2) | Figure 128 | Figure 140 | 22nd Sept 2025 |
| Rule 39 (1A) | Section 9 CGST only | Section 9 CGST and Section 5(3)/(4) IGST | 1st April 2025 |
| Rule 91 (2) | Refund order timelines not specified clearly | FORM GST RFD-04 to be issued within 7 days; officer may deny provisional refund; no revalidation needed | 1st Oct 2025 |
| Rule 110 | FORM GST APL-02; provisos included | Part A / Part B of FORM GST APL-02A; provision omitted | 22nd Sept 2025 |
| Rule 110A (new) | N/A | Single Member Bench for appeals; question of law sent back; ₹50 lakh cumulative limit for ITC/tax/fine considered | 22nd Sept 2025 |
| Rule 111 | FORM GST APL-02; provisos included self-certified copy | Part A / Part B of FORM GST APL-02A; provisos omitted; self-attested copy | 22nd Sept 2025 |
| Rule 113 (2) | No specific summary form | Summary of order in FORM GST APL-04A with final demand | 22nd Sept 2025 |
| Form GSTR-9 | Old tables and ITC reporting | New sub-tables (6A1, 6A2, H1, 8H1); clarified ITC availed/reversed/reclaimed; FY 2024-25 onwards | FY 2024-25 |
| Form GSTR-9C | Old reconciliation tables | Added rows for e-commerce tax (s. 9(5)); “paid” → “payable”; “cash” → “cash or ITC”; late fee row added | FY 2024-25 |
| New/ Substituted Forms | APL-02, APL-04, APL-05, APL-06, APL-07 | FORM GST APL-02A, APL-04A, revised APL-05, APL-06, APL-07 | 22nd Sept 2025 |
C. NOTIFICATION S.O. 4220(E), DATED 17-09-2025
- Extends the time to file GST Tribunal appeals till 30-06-2026 for orders communicated before 01-04-2026
- Sets a 3-month limit for orders communicated after 01-04-2026
D. PRESS RELEASE, DATED 24-09-2025: UNION MINISTER OF FINANCE AND CORPORATE AFFAIRS SMT. NIRMALA SITHARAMAN LAUNCHES GOODS AND SERVICES TAX APPELLATE TRIBUNAL IN NEW DELHI
- Independent forum for GST dispute resolution ensuring fair, fast, and transparent justice
- Tribunal structure: 31 State Benches + Principal Bench in New Delhi; Bench composition: 2 Judicial + 1 Centre Technical + 1 State Technical Member
- Digital features: GSTAT e-Courts portal for online filings, case tracking, virtual hearings; filing window extended to 30th June 2026
- Benefits: Swift resolution, reduced delays, consistent rulings, and strengthened trust between taxpayers and government
A. FAST-TRACK MERGERS: EXPANSION OF SCOPE
Through MCA notification G.S.R. 603(E) dated 4th September 2025, the scope of fast-track mergers under Section 233 was expanded through the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2025. The amendment allows a wider range of companies to adopt the fast-track route, reducing burden on NCLTs and shifting simpler cases to Regional Directors. Inclusions include mergers between holding and subsidiary companies (not wholly owned, if transferor not listed), mergers between unrelated unlisted companies as per borrowing/compliance thresholds, and mergers between fellow subsidiaries under common control. This facilitates quicker restructuring and ease of doing business.
B. COMPANIES (INCORPORATION) SECOND AMENDMENT RULES, 2025
MCA notified Companies (Incorporation) Second Amendment Rules, 2025 effective 15th September 2025, substituting the existing Form RD-1 with a revised format, streamlining filings with Regional Director. These reflect efforts to simplify corporate procedures and enhance governance under Companies Act, 2013.
C. MCA EXTENDS LAST DATE FOR FILING DIR-3 KYC AND DIR-3-KYC-WEB
MCA issued General Circular No. 04/2025 dated 29 September 2025, extending due date for e-Form DIR-3 KYC and DIR-3 KYC-WEB without late fee from 30 September 2025 to 15 October 2025, responding to stakeholder requests for more compliance time.
A. EASE OF DOING INVESTMENT – SMOOTH TRANSMISSION OF SECURITIES FROM NOMINEE TO LEGAL HEIR
- In India, securities holders nominating persons leads securities to pass first to nominee, who must transmit to legal heirs.
- Transmission from nominee to legal heir sometimes treated as capital gain transfer, causing tax complications and delays, though section 47 clause (iii) excludes this transmission from transfer definition.
- SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/130 (dated 19 September 2025) clarifies and simplifies this process.
B. INVESTOR PROTECTION AND EDUCATION FUND (IPEF) REGULATIONS, 2025
On 2 September 2025, SEBI amended IPEF Regulations, revising categories for Fund credit (Reg 4) and streamlining utilization framework (Reg 5) for investor education, awareness, and protection. The amendments reflect SEBI’s focus on retail investor confidence and market safeguarding.
C. SHARE BASED EMPLOYEE BENEFITS (SBEB) REGULATIONS
SEBI notified amendments on 8 September 2025, refining governance, transparency, and disclosure for employee stock options and benefit schemes, tightening compliance and clarifying disclosures to protect employees and shareholders.
D. COMPLIANCE GUIDELINES FOR DIGITAL ACCESSIBILITY CIRCULAR ‘RIGHTS OF PERSONS WITH ACT, 2016 AND RULES MADE THEREUNDER
SEBI circular dated 31 July 2025 mandated digital accessibility for Regulated Entities’ digital platforms per the Rights of Persons with Disabilities Act, 2016. The 25 September 2025 circular (No. 131) provides compliance guidelines including clarifications, roadmap, reporting, and responsibilities to remove barriers for investors with disabilities.
Disclaimer:
Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates for the period 30.09.2025
