Summary: During the week of April 21st to 27th, 2025, various tax and regulatory bodies issued significant notifications and circulars. In Income Tax, CBDT mandated TCS on ten new goods exceeding ₹10 lakh per transaction and updated Form 27EQ for reporting. Exemptions were granted to the National Mission for Clean Ganga and the Mysore Palace Board. Expenses for settling violations under SEBI, Competition, and Depositories Acts are now disallowed as business expenditure. The Supreme Court directed courts to report cash transactions above ₹2 lakh to the Income Tax Department. For GST, the Goods and Services Tax Appellate Tribunal (Procedure) Rules 2025 were notified. The Supreme Court ruled against state rules inconsistent with central CST rules and disallowed ITC on exempt UP VAT sales. The Mumbai High Court clarified no GST on development agreements without TDR/FSI transfer. AAR Maharashtra issued rulings on GST applicability for a cancer test, a backward class girls’ hostel rent, a geometry compass box, and geomembrane. Central Excise saw no new notifications. In Customs, Rohini Yard Jetty was added as a custom port, and tariff values were fixed for edible oils, brass scrap, areca nut, gold, and silver. Authorities were appointed for SCN adjudication, and transhipment application fees were removed. Safeguard duty was imposed on certain steel imports from China and Vietnam. Guidelines for ‘Proof of Origin’ replaced ‘Certificate of Origin’, and procedures for air cargo movement and transhipment were simplified. NFFRL Kathmandu was recognized for food export analysis, and CITES permit exemptions for limited agarwood export were clarified. The Attari ICP was closed. The Supreme Court clarified the retroactive application of overruled NDPS judgments. DGFT extended MIP on certain synthetic knitted fabrics and introduced a ‘Mode of Export of Services’ field in eBRC. Inputs were sought for SCOMET export amendments for testing, and a new SION was issued for Doxycycline tablets. SEBI amended REITs and Credit Rating Agencies regulations, extended trading window closure to relatives of designated persons, changed NAV cut-off timings for overnight mutual funds, and issued draft circulars on LODR and ODR relaxations. MCA had no new releases. IBBI suspended two IPs for misconduct and NCLAT addressed insolvency initiation and liquidation. RBI issued guidelines on minor deposit accounts, reviewed LCR haircuts and run-off rates, mandated migration to the ‘.bank.in’ domain, amended FEMA compounding directions, relaxed norms for exports to ‘Bharat Mart’ UAE, extended the timeline for BIS note sorting machine standards, capped FEMA compounding amounts, and issued Master Directions on FEMA compounding and incentives for the Currency Distribution & Exchange Scheme. The Supreme Court clarified the distinction between copyright and design for industrial works and empowered courts to decide interest rates in the absence of agreement.
A. Income Tax
TCS to be collected on 10 new items notified: CBDT has notified certain specified goods on which Tax Collection at Source (TCS) shall be applicable. It shall apply where the value of goods exceeds Rs 10 Lakh per transaction. The rate of TCS is 1%. The obligation to collect TCS is on the seller of the specified goods. The newly notified Goods are 1. Wrist watches, 2. Art pieces (e.g., antiques, paintings, sculptures), 3. Collectibles (e.g., coins, stamps), 4. Yachts, rowing boats, canoes, helicopters, 5. Sunglasses, 6. Bags (e.g., handbags, purses), 7. Shoes, 8. Sportswear and equipment (e.g., golf kits, ski-wear), 9. Home theatre systems, and 10. Horses for horse racing and polo. (Income Tax Notification 36/2025 Dated 22/04/2025)
CBDT amends form No. 27EQ, added 10 new items for TCS Reporting: The return Form 27EQ has been updated to include collection at source on the sale of items such as wrist watches, art pieces (antiques, paintings, sculptures), collectibles (coins, stamps), yachts, rowing boats, canoes, helicopters, sunglasses, bags (handbags, purses), shoes, sportswear and equipment (golf kits, ski-wear), home theatre systems, and horses for racing and polo. (Income Tax Notification 35/2025 Dated 22/04/2025)
Exemptions to National Mission for Clean Ganga: National Mission for Clean Ganga, an authority constituted under the Environment (Protection) Act, 1986 has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Income-tax Act. (Income Tax Notification 37/2025 Dated 22/04/2025)
Expenses for settlement of SEBI, Competition, Depositories Act violations not allowable: The notification provides that expenses incurred to settle legal proceedings related to contraventions or defaults under certain laws will not be considered business or professional expenditures. Consequently, no deduction will be allowed for such expenses. The listed laws include the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996, and the Competition Act, 2002. (Income Tax Notification 38/2025 Dated 23/04/2025)
Exemptions to Mysore Palace Board: The Mysore Palace Board, a Board established under the Mysore Palace (Acquisition and Transfer) Act, 1998, has been notified under section 10(46) for exemption on its income arising from Income from Palace or proceeds of any property vested in the Board, fees and charges, rent and interest on bank deposits. (Income Tax Notification 39/2025 Dated 24/04/2025)
SC, Report & probe cash transactions exceeding ₹2 Lakh under section 269ST: Case of The Correspondence RBANMS Education Institution vs B Gunashekhar, SC Judgement Dated 16th April 2025. The apex court held that whenever, a suit is filed with a claim that Rs. 2,00,000/- and above is paid by cash towards any transaction, the courts must intimate the same to the jurisdictional Income Tax Department to verify the transaction and the violation of Section 269ST of the Income Tax Act, if any the courts must intimate the same to the jurisdictional Income Tax Department to verify the transaction. (SC Judgement Dated 16/04/2025)
B. GST
Goods and Services Tax Appellate Tribunal (Procedure) Rules 2025: The rules have been notified to establish a structured and efficient framework for the functioning of the Goods and Services Tax Appellate Tribunal. The rules are effective from 24th April 2025. The procedural framework is divided into 11 chapters, encompassing 70 distinct rules and four designated forms, with the objective of promoting uniformity, procedural clarity, and digital efficiency in the functioning of the Tribunal. (Fin Min Notification Dated 24/04/2025)
SC, State Government cannot frame rules inconsistent with Central Rules under CST Act: Case of State of Rajasthan vs Combined Traders, SC Judgement Dated 16th April 2025. The apex court held that State Government cannot frame rules in exercise of power under Section 13(3) of the Central Sales Tax Act (CST Act), which will be inconsistent with the rules framed by the Central Government in exercise of powers under Section 13(1) of the CST Act. (SC Judgement Dated 16/04/2025)
SC, ITC Disallowed on exempt sales under section 7(c) of UP VAT Act: Case of Neha Enterprises vs Commissioner Commercial Taxes, SC Judgement Dated 9th April 2025. The apex court held that as per section 13(7) of the Uttar Pradesh Value Added Tax Act, 2008 (UP VAT Act), input tax credit will not be allowed to a dealer with respect to the purchase of any goods where the sale of such goods by the dealer is exempt from tax under Section 7(c) of the Act. (SC Judgement Dated 09/04/2025)
HC, No GST on Development Agreements Without TDR/FSI Transfer: Case of Srinivasa Realcon Private Ltd vs DC Anti-evasion CGST, Mumbai HC Judgement Dated 08th April 2025. HC has provided an significant ruling for homeowners and landowners involved in redevelopment projects. The court clarified that GST is not applicable in specific Joint Development Agreement (JDA) scenarios where development rights are not sold. The court held that in situations where the landowner does not sell development rights but merely appoints a developer to construct on their land, GST is not applicable under Entry 5B. This is because there is no supply of service in the form of TDR (Transfer of Development Rights) or FSI (Floor Space Index) transfer. (HC Mumbai Judgement Dated 08/04/2025)
AAR, Biotech’s Cancer Test not exempt from GST: Case of Epigeneres Biotech Private Limited, AAR Maharashtra Ruling Dated 27th March 2025. AAR ruled that the provision of diagnostic services by the applicant would not qualify for exemption from GST under Entry, No.74 of notification No.12/2017 dated 28th June 2017. The Service Tax Accounting Code (SAC) 9981 would become relevant in this case. (AAR MH Ruling Dated 27/03/2025)
AAR, Renting Residential Building for Backward Class Girls Hostel is GST Exempt: Case of Ravindra Navnath Satpute (Dewoo Engineers), AAR Maharashtra Ruling Dated 27th March 2025. AAR ruled that service provided by the applicant to the Social Justice and Special Assistance Department, Govt of Maharashtra qualifies to be an exempted supply of pure services vide serial no 3 of notification 12/2017. As the subject transaction has been held to be exempt from the levy of GST, TDS under Section 51 of the CGST Act, 2017, will not be applicable. (AAR MH Ruling Dated 27/03/2025)
AAR, Geometry Compass Box is a Mixed Supply, Taxable at 18%: Case of Amardeep Udyog, AAR Maharashtra Ruling Dated 26th March 2025. AAR ruled that the Geometry Compass Box supplied by the applicant to BMC amounts to mixed supply under section 2 (74) and is appropriately classifiable under Chapter Sub Heading 90178010, being HSN of the goods that attracts highest rate of tax. The rate of GST applicable would be 18% (9% CGST + 9% SGST). (AAR MH Ruling Dated 26/03/2025)
AAR, Geomembrane for Waterproof Lining Under Textile Chapter 59, Attracts 12% GST: Case of Lamifab and papers Private Limited, AAR Maharashtra Ruling Dated 26th March 2025. AAR ruled that Geo Membrane for Water Proof Lining is classifiable under Tariff item 59111000. GEO Membrane laminated HDPE woven polymer lining attract (4) 12% GST. (AAR MH Ruling Dated 26/03/2025)
C. Central Excise
No Notifications/ Circular during the week.
B. Custom Duty
Customs added Rohini Yard Jetty, Rohini Village, Raigad as custom port: The notification add Rohini Yard Jetty, Rohini Village, Raigad in Maharashtra as new custom port. (Custom Notification 27/2025 (NT) Dated 22/04/2025)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 24th April 2025. The tariff value for crude palm oil is set at USD 1153 per metric ton, while gold and silver have tariff values of USD 1106 per 10 grams and USD 1045 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 6970 per metric ton. (Custom Notification 28/2025 (NT) Dated 23/04/2025)
SCN Adjudication Authorities appointed: The notification appoints officers to handle the adjudication of show-cause notices (SCNs) as detailed in Annexures I to VII. It specifies the officers who will exercise the powers and duties of the Commissioner of Customs, Nhava Sheva–V, Mumbai Customs Zone–II, for adjudicating the notices listed in the annexures. (Custom Notification 29/2025 (NT) Dated 24/04/2025)
No fees for transhipment applications at customs stations: The notification amends the Goods Imported (Conditions of Transhipment) Regulations, 1995. It provides that no fees will be applicable for applications concerning the transhipment of imported goods across all customs stations. (Custom Notification 30/2025 (NT) Dated 24/04/2025)
Safeguard duty imposed on Non-Alloy and Alloy Steel Flat Products: The notification imposes safeguard duty on Non-Alloy and Alloy Steel Flat Products namely (a) Hot Rolled coils, sheets and plates, (b) Hot Rolled Plate Mill Plates, (c) Cold Rolled coils and sheets, (d) Metallic Coated Steel coils and sheets, whether or not profiled, including Galvanneal, Coated with Zinc or Aluminium-Zinc or Zinc-Aluminium-Magnesium, and (e) Colour Coated coils and sheets, whether or not profiled, imported from China and Vietnam. It shall be effective for a period of two hundred days. (Custom Notification 01/2025 (SG) Dated 21/04/2025)
Guidelines replacing ‘Certificate of Origin’ with ‘Proof of Origin’: The circular amend guidelines related to the Customs (Administration of Rules of Origin under Trade Agreements) Rules. The notification 14/2025 which replaced ‘Certificate of Origin’ with ‘Proof of Origin’ to align with the amended Section 28DA of the Customs Act, reflecting a global shift towards self-certification. Proof of Origin now encompasses both certificates issued by designated authorities and self-declarations by eligible exporters. The type of proof of origin required will depend on the specific trade agreement. (Custom Circular 14/2025 Dated 21/04/2025)
Simplification of procedures related to Air Cargo Movement & Transhipment: The key changes include the removal of the Rs. 20 Transhipment Permit fee to reduce compliance burdens and the introduction of a more standardized procedure for the movement of Unit Load Devices (ULDs) outside Customs areas. ULDs can now be temporarily imported with tracking devices, subject to compliance with security regulations. It also highlights the use of a National Transhipment Bond to simplify transhipment procedures and the activation of an ICEGATE facility to facilitate transhipment requests, eliminating the need for physical visits to service centres. (Custom Circular 15/2025 Dated 25/04/2025)
Recognition of National Food & Feed Reference Laboratory (NFFRL), Kathmandu, Nepal: It recognizes Nepal’s National Food & Feed Reference Laboratory (NFFRL) in Kathmandu for analysing specific food items intended for export to India. The Indian authorities will accept NFFRL’s analysis certificates for products such as juice, jam, jelly, pickles, candies, ginger, fresh fruits and vegetables, and instant noodles, provided the laboratory maintains its ISO/IEC 17025 accreditation from the National Accreditation Board for Testing and Calibration Laboratories (NABL). (Custom Instructions 04/2025 Dated 21/04/2025)
CITES Permit not needed for limited Agarwood export: It clarify the requirements regarding CITES permits for agarwood products transported by individuals during international travel. The exempted limits include up to 1 kg of agarwood wood chips, 24 ml of agarwood oil, and two sets of beads or prayer beads (or two necklaces or bracelets) per person. These are considered dead specimens, parts, or derivatives of Appendix II species and are excluded from permit requirements under CITES. (Custom Instructions 05/2025 Dated 25/04/2025)
Closing of the Integrated Check Post Attari for all types of incoming and outgoing passengers and movement of goods: Indian government has ordered the immediate closure of the Integrated Check Post (ICP) at Attari on the India-Pakistan border in Punjab. The government has cited cross-border linkages to the terrorist attack on tourists in Pahalgam as the reason for this closure. The closure affects all incoming and outgoing passengers, as well as the movement of goods. Individuals who have already crossed the border with valid endorsements are permitted to return through the Attari route before 1st May 2025. (Custom Instructions 06/2025 Dated 26/04/2025)
SC. Clarifications on NDPS Act, Overruling judgments apply retroactively: Case of Directorate of Revenue Intelligence vs Raj Kumar Arora, SC Judgement Dated 17th April 2025. The apex court has clarified on Narcotics Drugs and Psychotropic Substances (NDPS) Act and reiterated the established legal principle that when a judicial precedent is overruled, the subsequent judgment operates retrospectively, impacting past transactions unless explicitly stated otherwise by the court. (SC Judgement Dated 17/04/2025)
E. Directorate General of Foreign Trade (DGFT)
Import of Synthetic Knitted Fabrics ‘Free’ if CIF value is $3.5 or above per Kg: The notification extends the Minimum Import Price (MIP) condition on four specific ITC (HS) codes of synthetic knitted fabrics until 31st March 2026. The import policy for these synthetic knitted fabrics is classified as “Restricted.” However, a provision allows for “Free” import if the Cost, Insurance, and Freight (CIF) value of the imported goods is 3.5 US Dollars and above per kilogram. (DGFT Notification 05/2025 Dated 23/04/2025)
Introduction of ‘Mode of Export of Services’ field in eBRC format for services exports: DGFT has introduced a new field titled ‘Mode of Export of Services’ in the Electronic Bank Realisation Certificate (eBRC) format for service exports. Exporters certifying eBRCs must now specify the mode of export, classified into four types: Mode 1 (Cross-border Supply), Mode 2 (Consumption Abroad), Mode 3 (Commercial Presence), and Mode 4 (Presence of Natural Persons). (DGFT Trade Notice 02/2025 Dated 21/05/2025)
Seek Inputs on amendments for export of SCOMET Items for ‘Testing and Evaluation’ purposes: The amendments relates to the temporary export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items for the specific purpose of ‘Testing and Evaluation’. Currently, the policy allows temporary exports of SCOMET items for demonstration, display, tenders, and similar purposes. The draft seeks to expand these provisions to include exports for testing and evaluation abroad. The stakeholders comments/ suggestions are invited. (DGFT Trade Notice 03/2025 Dated 23/05/2025)
New SION for export of Doxycycline 100 mg dispersible tablets: The new SION A-3685, falls under the ‘Chemical and Allied Product’ category. It establishes the input-output norms for the export product “Doxycycline 100 mg. Dispersible Tablets.” It specifies that for the export of one number of Doxycycline 100 mg. Dispersible Tablet, the quantity allowed for the import item Doxycycline Monohydrate U.S.P/B.P is 106.13 mg. (DGFT Public Notice 03/2025 Dated 24/05/2025)
F. Securities and Exchange Board of India (SEBI)
Amendments to SEBI Real Estate Investment Trusts Regulations: The key changes include the definition and conditions related to “common infrastructure” for REITs, and modifications to the definition of “cash equivalent.” The regulations also address filling vacancies for independent directors, specify trustee responsibilities, and detail conditions for transferring locked-in units held by sponsors. It also outline eligible investments for REITs, including property management companies, liquid mutual funds, and interest rate derivatives, subject to certain conditions. It also introduce provisions related to Small and Medium Real Estate Investment Trusts (SM REITs), including initial offer processes, scheme offer documents, pricing, and allotment procedures. (SEBI Notification Dated 22/04/2025)
Amendments to SEBI Credit Rating Agencies Regulations: The amendments include substituting a reference in the definition of “group company,” defining “subscriber- pays business model” for ESG rating providers, and clarifying the scope of ESG rating activities under other financial sector regulators. It also introduces specific obligations for ESG rating providers following a subscriber-pays model. It also mandate that ESG rating providers share the rating report simultaneously with subscribers and the rated entity, allowing two working days for comments. Any comments received must be included in an addendum to the report. (SEBI Notification Dated 22/04/2025)
Extension of trading window closure to Immediate Relatives of Designated Persons: SEBI has extended the automated trading window closure mechanism to the immediate relatives of designated persons in listed companies to prevent insider trading during periods when unpublished price sensitive information (UPSI) is likely to be in their possession, particularly around the declaration of financial results. Stock exchanges and depositories are now required to implement systems to freeze the PANs of these immediate relatives at the security level during the trading window closure period. (SEBI Circular Dated 21/04/2025)
Change in cut-off timings to determine applicable NAV in overnight schemes of Mutual Funds: SEBI has modified the cut-off timings for determining the applicable Net Asset Value (NAV) for repurchase or redemption of units in mutual fund overnight schemes. Previously, a uniform cut-off time existed for liquid and overnight funds. Now, for overnight funds, applications received up to 3:00 PM will be processed using the NAV of the immediately preceding business day, while applications received after 3:00 PM will be processed using the next business day’s NAV. For online applications in overnight schemes, a later cut-off time of 7:00 PM will be applicable. (SEBI Circular Dated 22/04/2025)
Draft Circular- Limited relaxation from compliance with certain provisions of LODR Regulations: The draft circular relates to relaxation from certain compliance requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations (LODR). It addresses the obligation for entities with listed non-convertible debt securities to send physical copies of statements containing salient features of financial documents to holders who haven’t registered their email addresses, relaxed till 30th September 2025. The entities should disclose a web link to the statement in their advertisements. (SEBI Draft Circular Dated 21/04/2025)
Draft Circular Amendments to Online Resolution of Disputes (ODR) in the Indian Securities Market: The key proposals include adding depositories under the ODR framework, provisions for direct arbitration in specific cases, making consent given during conciliation irrevocable, maintaining separate conciliator and arbitrator panels by ODR institutions, and introducing Standard Operating Procedures (SOPs) for dispute handling. It also clarifies the scope of disputes, roles of MIIs, enrolment requirements for market participants, and the operational structure of the ODR Portal. It outlines the process for initiating dispute resolution, timelines, and conditions under which disputes can be brought to the platform. (SEBI Draft Circular Dated 21/04/2025)
G. Ministry of Corporate Affairs (MCA)
No Notifications/ Circular during the week.
H. Insolvency and Bankruptcy Board of India (IBBI)
NCLAT, Initiation of insolvency proceedings justified as application filed within limitation period: Case of Rohit Suri vs Rajasthan Financial Corporation, NCLAT Delhi Judgement Dated 03rd April 2025. The appellate tribunal held that initiation of Corporate Insolvency Resolution Process (CIRP) for failure to honour repayment obligation justified since application filed within limitation period. The appeal is dismissed. (NCLAT Delhi Judgement Dated 03/04/2025)
NCLAT, Corporate Debtor liquidation justified as CoC abstains from Resolution Plan vote: Case of Subh Laxmi Investment Advisory Pvt Ltd vs CoC Sintex Plastics Technology, NCLAT Delhi Judgement Dated 04th April 2025. The appellate tribunal held that order for liquidation of corporate debtor justified since Committee of Creditors [CoC] exercised its commercial wisdom and chose to abstain from voting for resolution plan. Thus, abstaining from voting for resolution plan resulted into expiry of CIRP period and led to liquidation. (NCLAT Delhi Judgement Dated 04/04/2025)
IBBI suspends Mr Jitendrakumar Rambaran Yadav IP for asset protection failure and improper sale: It was found that that he committed serious contraventions regarding asset protection, improper asset sale involving related parties, and non-compliance with NCLT directions causing delays. The Disciplinary Committee suspended the registration of Mr Jitendrakumar Rambaran Yadav for one years. (IBBI Order Dated 22/04/2025)
IBBI suspends Mr Vikas Prakash Gupta IP for fee violations: It was found that while the Committee of Creditors (CoC) had specifically approved separate monthly fees for Mr. Gupta as the Resolution Professional and for a distinct support service agency, Quantum Resolution Professional Private Limited, he instead drew the fees allocated to Quantum himself. Thus he violated principles of transparency and provisions of IBC. The Disciplinary Committee suspended the registration of Mr Vikas Prakash Gupta for one years. (IBBI Order Dated 25/04/2025)
I. Reserve Bank of India (RBI)
Opening of and operation in deposit accounts of minors: The minors of any age can open savings and term deposit accounts through their natural or legal guardian, including their mother. Minors above 10 years can independently open and operate such accounts within limits set by individual banks based on their risk management policies. Banks have the discretion to offer additional facilities like internet banking and debit cards to minor account holders. The minor accounts, whether independently operated or through a guardian, cannot be overdrawn and must maintain a credit balance. Banks are required to conduct customer due diligence as per KYC guidelines for all minor accounts. (RBI Notification 26/2025 Dated 21/04/2025)
Liquidity Coverage ratio (LCR)- review of haircuts on HQLA and review of run- off rates on deposits: RBI has revised its guidelines on liquidity standards, specifically the LCR. The changes include an increased run-off factor of 2.5 percent for retail deposits with internet and mobile banking, treating unsecured wholesale funding from non-financial small businesses similar to retail deposits, and valuing Level 1 High Quality Liquid Assets (HQLA) based on current market value with haircuts aligned to LAF/MSF margin requirements. Also, the deposits contractually pledged as collateral will be considered callable for LCR. The deposits from non-financial entities like trusts and partnerships will now attract a lower run-off rate of 40 percent, instead of 100 percent, unless categorized as small business customers. (RBI Notification 27/2025 Dated 21/04/2025)
Migration to ‘.bank.in’ domain: RBI has issued instructions to begin migrating their digital infrastructure to the new ‘.bank.in’ domain. The Institute for Development and Research in Banking Technology (IDRBT) has been appointed as the exclusive registrar for the ‘.bank.in’ domain. It has been authorized by the National Internet Exchange of India (NIXI), functioning under the Ministry of Electronics and Information Technology (MeitY). IDRBT will support banks throughout the application and migration procedures. (RBI Notification 28/2025 Dated 22/04/2025)
Amendment to Directions for Compounding of Contraventions under FEMA: It remove the linkage of the compounding amount to earlier orders, treating each application as fresh. It also introduces additional requirements for electronic payments related to compounding applications. Applicants must now provide their mobile number, the specific RBI office where payment was made, and the mode of application submission (PRAVAAH/physical) to facilitate reconciliation and reduce processing delays. (RBI Notification 29/2025 Dated 22/04/2025)
Exports through warehouses in ‘Bharat Mart’ in UAE – relaxations: RBI has permitted Authorised Dealers (AD) banks to allow exporters up to nine months from the date of sale to realise and repatriate the full export value of goods shipped to ‘Bharat Mart’. Also, AD banks can approve, without prior conditions (upon verifying reasonableness), the opening or hiring of warehouses in ‘Bharat Mart’ by Indian exporters holding a valid Importer Exporter Code, as well as remittances for both initial and recurring operational expenses. (RBI Notification 30/2025 Dated 23/04/2025)
Extension of timeline to implement BIS standards for note sorting machines: The earlier circular dated 30th October 2024, detailed the standards issued by the Bureau of Indian Standards (BIS). Due to difficulties faced by banks in meeting the original timeline, the RBI has extended the same for implementation by six months, to 1st November 2025. (RBI Notification 31/2025 Dated 24/04/2025)
Amendment to Directions for Compounding of Contraventions under FEMA: The key change relates to capping of the maximum compounding amount. The new clause, Para 5.4.II.vi, states that subject to the satisfaction of the compounding authority, the maximum compounding amount imposed for contravention of each regulation or rule within a compounding application can be capped at ₹2,00,000. This capping applies specifically to contraventions listed under row 5 of the computation matrix mentioned in the Master Directions. (RBI Notification 32/2025 Dated 24/04/2025)
Master Directions on Compounding of Contraventions under FEMA: The Master Directions outlines the process for compounding contraventions of FEMA, excluding those under Section 3(a), upon application by the contravener. It details the application procedure, cases not eligible for compounding (e.g., repeated contraventions within three years, serious offenses like money laundering, and non-completion of administrative actions), and the factors considered when determining the compounding amount, including undue gains, loss caused, and the contravener’s conduct. A guidance note provides a computation matrix for various types of contraventions. The compounding authority will issue an order after a hearing, and the specified amount must be paid within 15 days. (RBI Master Directions 135/2025 Dated 22/04/2025)
Master Direction on incentives for Currency Distribution & Exchange Scheme for bank branches including currency chests: The scheme provides financial incentives and service charges to banks for various activities. These include opening and operating currency chests in the North Eastern region and inaccessible areas of Jammu & Kashmir and Ladakh, exchanging soiled notes, adjudicating mutilated notes, distributing coins (with an additional incentive for rural and semi- urban areas), and cash deposits by non-chest branches under the linkage scheme with currency chests. Currency chest holding banks are required to pass on the relevant incentives to their linked branches. (RBI Master Directions 136/2025 Dated 24/04/2025)
J. Miscellaneous
SC, Clarification regarding Copyright vs Design for industrial works: Case of Cryogas Equipment Private Limited vs Inox India Limited, SC Judgement Dated 15th April 2025. The apex court has established a detailed framework to differentiate between works protected under the Copyright Act, 1957, and designs eligible for registration and protection under the Designs Act, 2000. The Bench clarified the distinction between ‘artistic work’ and ‘design,’ emphasising that while an artistic work may have copyright protection, its industrial application as a design is subject to the limitations of Section 15(2) of the Copyright Act and requires registration under the Designs Act.
— “We have thus formulated a two-pronged approach in order to crack open the conundrum caused by Section 15(2) of the Copyright Act so as to ascertain whether a work is qualified to be protected by the Designs Act. This test shall consider: (i) whether the work in question is purely an ‘artistic work’ entitled to protection under the Copyright Act or whether it is a ‘design’ derived from such original artistic work and subjected to an industrial process based upon the language in Section 15(2) of the Copyright Act; (ii) if such a work does not qualify for copyright protection, then the test of ‘functional utility’ will have to be applied so as to determine its dominant purpose, and then ascertain whether it would qualify for design protection under the Design Act.” (SC Judgement Dated 15/04/2025)
SC, Section 34 CPC Empowers Court to Decide Interest Rate in Absence of Agreement: Case of IK Merchants Pvt Ltd vs State of Rajasthan, SC Judgement Dated 01st April 2025. The apex court held that in the absence of any agreement or contract, provisions of Section 34 of the Code of Civil Procedure empowers court to determine appropriate interest rate. Accordingly, interest determined @6% per annum till date of decree and 9% per annum till date of realization on enhanced value to shares. (SC Judgement Dated 105/04/2025)
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Compiled by:- CMA Yash Paul Bhola, MBA, ICWAI, Former Director (Finance), National Fertilizers Limited.
Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)
