Author: Pushkar Mer

Survey on Foreign Collaboration in Indian Industry: 2023–2025 – Data Release

by Pushkar Mer

Reserve Bank released the results of the fifteenth round of its biennial survey on foreign collaboration in Indian industry (FCS) covering the financial years 2023-24 and 2024-25. This survey captures information on financial parameters and operations of the Indian companies having technical collaboration with foreign companies.

Highlights:

  • Foreign technical collaboration (FTC) agreements were primarily present in the foreign direct investment (FDI) companies, which were either foreign subsidiaries (i.e., single foreign investor holding more than 50 per cent of total equity) or foreign associate companies (i.e., foreign investors’ equity holding ranging between 10 to 50 per cent), with 68 per cent and 21 per cent share of the total FTCs, respectively.
  • The FTCs in the manufacturing sector entities accounted for 78.4 per cent of the total reported FTCs, of which, machinery and motor vehicles together accounted for 30.6 per cent; while FTCs in the services sector constituted 16.6 per cent.
  • Japan, the United States of America (USA) and Germany remained the top three countries contributing to the technical collaborations in the Indian entities.
  • Around 61 per cent of FTCs involved technology know-how transfer by the foreign collaborators and 8 per cent FTCs were for use of trademarks / brand names.
  • Royalty payments, inclusive both royalty and lump sum technical fees, was the payment mode for around two-thirds of FTCs.
  • Of the 601 reported FTC agreements, 187 had export restriction clauses and 188 FTC had provision for exclusive rights on assets transferred.
  • Manufacturing sector had the highest share in value of production among the FTC companies. Within manufacturing, motor vehicles sector had the largest share.
  • The exports of the FTC reporting entities grew at a faster pace (20.3 per cent) as compared to the imports (4.6 per cent) in 2024-25 – they had 17.7 per cent and 18.6 per cent shares, respectively, in the total value of production.
  • Average profitability of FTC reporting companies, measured by the ratio of gross profit to capital employed, stood at 14.4 per cent in the current survey round.

Great initiative by Government of India towards simplification of labour laws

by Pushkar Mer

The Government has consolidated 29 labour laws into four comprehensive Labour Codes. The four Labour Codes include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.

The Industrial Relations Code, 2020

The Industrial Relations Code, 2020 revolutionizes labour laws by simplifying compliance and promoting harmonious employer and employee relations. It strengthens collective bargaining, dispute resolution, and job security through clearer, uniform provisions. The Code empowers workers with uniform definitions while granting employers greater flexibility in operations. Overall, it fosters industrial peace, boosts productivity, and supports a balanced, growth-oriented work environment.

The Code on Wages, 2019

The Code on Wages, 2019 promotes fairness, equity, and inclusivity in India’s labour market. By ensuring uniform wage standards and social security, it safeguards both workers’ rights and employers’ interests. Overall, it strengthens economic justice, encourages formalisation, and enhances the dignity of labour.    

The Code on Social Security, 2020

The Code on Social Security, 2020 consolidates nine existing labour laws into a single, comprehensive framework. It is a step to ensure universal social protection for all workers by strengthening social welfare coverage for both organized and unorganized workers including gig and platform workers. It also promotes women’s participation in the workforce, and simplifies compliance, thereby enhancing ease of doing business.

The Code reflects the Government’s commitment towards inclusive growth and social security for all, in line with the vision of a Viksit Bharat by 2047

The Occupational Safety, Health and Working Conditions Code, 2020

The Occupational Safety, Health and Working Conditions Code, 2020 strengthens India’s labour architecture by unifying standards, empowering workers, and enhancing ease of doing business. It lays the foundation for a safer, fairer, and more productive workforce aligned with India’s vision of inclusive and sustainable growth.

Supreme Court’s landmark GST Ruling

by Pushkar Mer

In case of Deputy Commissioner St & Ors Vs Wingtech Mobile Communications (India) Pvt. Ltd. & Anr, hon’ble Supreme Court held that once a taxpayer pays the 10% pre-deposit required for filing an appeal under GST, the department cannot attached bank account or block funds.

Key points

  • No bank account attachment after payment 10% pre depoit
  • Deemed stay on recovery
  • Protects genuine taxpayers from unfair recovery

This landmark decision of hon’ble Supreme Court is a big relief to corporates.

Anti-profiteering provisions

by Pushkar Mer

You might have observed that some companies started providing extra quantity and keeping price same. This might be because of passing GST benefits to consumer.

In a remarkable judgement, in case of Sharma Trading Company, hon’ble Delhi High Court held that increase in quantity or free material under scheme won’t satisfy requirement of passing on benefit to consumers after GST reduction. Price must be reduced to pass on GST benefits to consumers.

Circular No. 212/6/2024-GST dated June 26, 2024, has been withdrawn

by Pushkar Mer

In order to ensure uniformity in the implementation of the provisions of the law across field formations, CBIC withdraws, circular No. 212/6/2024-GST dated 26th June, 2024.

Therefore, the procedure prescribed vide the aforesaid circular for providing evidence of compliance of conditions of Section 15(3)(b)(ii) shall not be required.

Consequently, it is no longer mandatory for post-sale discount to be established per an agreement executed on or before the date of supply.  

Consequently, it is no longer mandatory for post-sale discount to be established per an agreement executed on or before the date of supply.  

Circular No. 253/10/2025 – GST dated 1st October, 2025

Cheque Truncation System (CTS) – Continuous Clearing

by Pushkar Mer 
As per the recent RBI announcement, Continuous Clearing of Cheques i.e., same-day cheque clearance, will be implemented across all Banks effective October 4, 2025, post which cheques issued by/to all customers will get debited/credited within a few hours
 Benefit of Continuous Clearing: Cheques deposited during the day will be credited on the same day, provided they are deposited within the stipulated cut-off time at the depositing branches.
 This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
 Time available for inward processing:
  1. During phase 1 (From October 4 to January 2, 2026), drawee banks shall be required to confirm (positively / negatively) cheques presented on them latest by end of confirmation session (i.e. 7:00 PM) else those will be deemed to have been approved and included for settlement. Item expiry time for all cheques shall be set as 7:00 PM in phase 1.
  2. In Phase 2 (from January 3, 2026), the item expiry time of cheques shall be changed to T+3 clear hours. For example, the cheques received by drawee banks between 10:00 AM and 11:00 AM will have to be confirmed positively or negatively by them by 2:00 PM (3 hours from 11:00 AM). Cheques for which confirmation is not provided by the drawee bank in the prescribed 3 hours shall be treated as deemed approved and included for settlement at 2:00 PM.

Pre-Deposit in case of Penalty order

by Pushkar Mer

With reference to Notification No. 16/2025- Central Tax dated September 17, 2025, in case of any Order demanding penalty without involving demand of any tax, no appeal shall be allowed to be filed unless a sum equal to 10% of the said penalty has been deposited by the appellant.This change will be implemented from 1st October, 2025. If any company has already receive such notices, it seems to be wise decision to file appeal by the end of September 2025 to avoid pre-deposit for filing appeal.

Implementation Timeline for GST Rate Changes

by Pushkar Mer

Timelines of GST rate changes recommended by 56th GST Council Meeting held on 03.09.2025:-

22nd September 2025

Implementation of GST rate changes on Services

22nd September 2025

Implementation of GST rate changes on all Goods except Tobacco products

To be decided

Pan Masala, gutkha, cigarettes, chewing tobacco products, unmanufactured tobacco and bidi will continue at existing rates until compensation cess obligations are discharged

1st November 2025

Operationalization of risk-based provisional refund system

End of September 2025

GST Appellate Tribunal to start accepting Appeals

End of December 2025

GST Appellate Tribunal to commence hearings

The Union Finance Minister and Chairperson of the GST Council will decide the actual date of transition to revised rates

As per the decisions taken, the GST rates of 12% and 28% have been removed by making changes in the GST rate structure of various items. Please note that these changes, along with other recommendations, will come into effect only upon issuance of the official notifications by CBIC.