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
This landmark decision of hon’ble Supreme Court is a big relief to corporates.
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.
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
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:
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.
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.
The Goods and Services Tax Council, led by Finance Minister Nirmala Sitharaman, is likely to roll out new tax slabs for goods by September 22, 2025. GST slab 12% and 28% will be removed. All necessary trial should be completed and ERP systems should be ready for new changes to cope up with.
CBDT vide Circular No 9/2025, dated July 21, 2025, in partial modification of its earlier Circular No. 3 of 2023 w.r.t cases where PANs of deductees/collectees were inoperative, gives relief to deductors who committed default of ‘short deduction/ collection’, in these cases.
(i) Where the amount is paid or credited from 01.04.2024 to 31.07.2025 and the PAN is made operative (as a result of linkage with Aadhaar) on or before 30.09.2025,
(ii) Where the amount is paid or credited on or after 01.08.2025 and the PAN is made operative (as a result of linkage with Aadhaar) within two months from the end of the month in which the amount is paid or credited.
Reserve Bank of India’s (RBI) updated Master Directions on Compounding of Contraventions under the Foreign Exchange Management Act, 1999 (FEMA), issued on April 22, 2025, vide Notification No. RBI/FED/2025-26/135, FED Master Direction No.04/2025-26) and amended via RBI/FED/2025-26/32, A.P. (DIR Series) Circular No. 04/2025-26 dated April 24, 2025. The said guidelines aim to streamline the compounding process, promote voluntary compliance, and enhance transparency in handling FEMA violations.
Below is a summary of the key aspects in reference to the Master Directions:
1. What is Compounding?
Compounding is a process that allows individuals or entities to voluntarily admit breaches of FEMA provisions, plead guilty, and seek redressal by paying a penalty.
This simplifies resolution, minimizes legal proceedings, and ensures compliance.
2. Key Updates in the Master Direction:
• Revised Compounding Rules: The Foreign Exchange (Compounding Proceedings) Rules, 2024, notified on September 12, 2024, have replaced the Foreign Exchange (Compounding Proceedings) Rules, 2000,
introducing higher monetary limits for compounding authorities and modernized payment methods.
• Application Process: Applications for compounding can be submitted physically or via the RBI’s PRAVAAH Portal with a fee of ₹10,000 plus GST. The application must include details such as foreign direct investment, external commercial borrowings, or branch/liaison office activities, along with an undertaking that the applicant is not under investigation by the Directorate of Enforcement (DoE).
• Compounding Authorities: The RBI’s Regional Offices and the Foreign Exchange Department (FED), CO Cell in New Delhi, are authorized to handle compounding applications.
• Non-Compoundable Cases: Contraventions involving unquantifiable amounts, serious offenses like money laundering, terror financing, or those already adjudicated by the DoE are not eligible for compounding.
Repeated contraventions within three years or cases under DoE investigation may also be ineligible.
• Payment of Penalty: The compounding amount, as specified in the order, must be paid within 15 days via demand draft or NEFT or RTGS or other permissible electronic modes in favor of the RBI. Failure to pay deems the application invalid, potentially leading to DoE referral.
• Compounding Matrix: A refined matrix provides transparency in calculating penalties, considering factors like undue gains, loss caused, and the contravener’s conduct. For non-reporting contraventions, the compounding authority may cap the penalty at ₹2,00,000 per contravention in exceptional cases, promoting a less punitive approach for technical lapses.
• Certificate of Compliance: Upon payment, the RBI issues a certificate confirming compliance with the compounding order.
It may be ensured that intimation of payment of application fee, to respective Regional Office, CO Cell, or Central Office, as the case may be. The compounding application must be accompanied by the payment details including the UTR number evidencing the payment of the application fee.
Please refer to the RBI’s official guidelines at https://www.rbi.org.in or contact the RBI’s Foreign Exchange Department for further details.
Disclaimer: This is for informational purposes only and does not constitute legal advice.
In case of T.K.Navas Vs Commissioner of Good and Service Tax, hon’ble Kerala High Court held that uploading of notices on the GST portal shall be treated as sufficient service.
Pushkar Mer 