COMPLIANCE UPDATES – DECEMBER 2025
Government policies
🟨 S&P Holds India Growth Outlook | S&P Global has retained India’s GDP growth projection at 6.5 per cent for FY26, according to its Economic Outlook for Asia Pacific released on November 26, 2025. The agency noted that uncertainty may ease if India reaches a trade settlement with the United States, and stated that risks to the outlook remain broadly balanced. S&P expects growth to improve slightly to 6.7 per cent in FY27, reflecting resilient domestic demand and investment momentum. The latest estimate is broadly aligned with recent updates from global bodies, including the IMF and World Bank, both of which raised their FY26 forecasts by 20 basis points but reduced FY27 projections, citing the impact of higher US tariffs. Economists view the steady forecast as a signal of medium-term macroeconomic stability despite policy and external trade challenges. (Business Line)
Goods and services tax
🟥 GSTN to Enforce Rule 10A Compliance | The Goods and Services Tax Network has confirmed that automated checks for Rule 10A will be activated shortly on the GST Portal following its advisory issued on November 20. The rule mandates that all regular GST registrants must furnish their bank account details within 30 days of issuance of GST registration or before filing their first GSTR-1 or IFF, whichever occurs earlier, with exemptions granted only to TCS, TDS, and suo motu registrations. Once implemented, the portal will prevent further return filing or outward invoicing until compliance is completed, and non-compliant taxpayers may face automatic suspension of registration under GST provisions. Suspension may result in an inability to issue valid tax invoices, generate e-way bills, file returns, or claim input tax credit, creating operational and cash flow risks for affected businesses. (Goods and Services Tax Network)
🟩 Simplified GST Registration Now Live | The Government of India has implemented the Simplified GST Registration Scheme under Rule 14A of the CGST Rules, 2017, effective November 1, 2025, to streamline compliance for small taxpayers. The scheme is available to applicants whose self-assessed monthly output tax liability, including all GST components and Compensation Cess, does not exceed ₹2.5 lakh. Registration must be applied through FORM GST REG-01 with Aadhaar authentication for the Primary Authorised Signatory and at least one Promoter or Partner, and approval will be issued electronically within three working days. The rule restricts obtaining a second registration under the same PAN in the same State or Union Territory. Withdrawal from the scheme is allowed only after meeting filing conditions and ensuring no pending amendments, cancellation requests, or Section 29 proceedings exist. (The Hindu)
Income tax
🟨 Refund Delays Dominate Google Searches | Income tax refunds have become one of the most searched topics on Google Trends as lakhs of taxpayers await delayed payouts. Over 92 lakh ITRs remain unprocessed, with the department subjecting high-value and red-flagged claims to deeper scrutiny. While small refunds are being issued, CBDT Chairman Ravi Agarwal has assured that all legitimate refunds will be cleared by December. Refund disbursal so far has dipped by nearly 18%, though authorities say pending appeals are being resolved faster than last year. Experts note that scrutiny-driven delays are temporary and expect the situation to normalise if timelines are met. (Financial Express)
🟩 CBDT Extends Capital Gains Relief to SEZs | The CBDT has notified key updates to the Capital Gains Accounts Scheme aimed at improving taxpayer convenience and reducing procedural hurdles. The revised rules expand the scope of eligible SEZ transactions and streamline documentation for claiming capital gains exemptions. Taxpayers will now be able to use a wider range of SEZ reinvestment options and enjoy simplified compliance for deposit and withdrawal under the scheme. The move is expected to ease long-standing operational bottlenecks faced by individuals and businesses in capital gains rollover. Tax experts say the update aligns the scheme with current market realities and promotes smoother reinvestment into SEZs. (Economic Times)
🟩 Simplified ITR Rules From April 1, 2026 | The CBDT has confirmed that simplified ITR forms and rules under the new Income Tax Act, 2025, will take effect from April 1, 2026. The department plans to notify the redesigned forms by January, so taxpayers have enough time to update internal systems and processes. The new law, replacing the six-decade-old Income Tax Act of 196, focuses on easing compliance rather than altering tax rates. It cuts total sections from 819 to 536 and chapters from 47 to 23, while modernising language and eliminating redundant provisions. Officials say user-friendly forms, supported by 39 new tables and 40 formulas, will make tax filing clearer and more intuitive for individuals and businesses alike. (Financial Express)
Corporate and allied laws
🟩 MCA Plans Audit Relief for Small Companies | The Ministry of Corporate Affairs is considering an amendment to Section 139 of the Companies Act, 2013, to exempt companies with annual turnover up to ₹1 crore from mandatory statutory audit, according to reports. If implemented, this would be the first turnover-based exemption under the Act and would align the audit threshold with the tax audit limit for many micro-businesses. The proposal aims to reduce compliance cost burdens for micro-enterprises, including OPCs, by eliminating audits that officials say often yield limited value and rarely detect material misstatements. However, the move has triggered governance concerns from regulatory and professional bodies, including ICAI, over the absence of alternative oversight mechanisms if both statutory and tax audits are waived for such entities. The draft amendment is expected to be introduced in an upcoming Parliament session, where discussions may focus on balancing compliance efficiency with financial reporting integrity. (Economic Times)
🟩 SEBI Proposes BSDA Valuation Changes | SEBI has proposed excluding zero-coupon zero-principal bonds and delisted securities from portfolio value calculations used to determine eligibility for a Basic Services Demat Account, according to reports. The regulator noted that ZCZP instruments are non-transferable, non-tradable and carry no monetary payout, and therefore should not influence whether an investor crosses the ₹50,000 threshold that triggers annual maintenance charges. BSDAs were introduced to reduce demat-related costs for small retail investors, and the proposed change aims to ensure that passive or non-tradable holdings do not disadvantage account holders. The proposal is expected to undergo public consultation before final implementation, with the industry viewing it as a step towards fairer compliance and cost rationalisation for small investors. (Business Standard)
Finance and banking
🟩 RBI Extends Export Realisation Window | The Reserve Bank of India has amended the Foreign Exchange Management (Export of Goods and Services) Regulations through its Second Amendment Notification dated November 13, 2025, extending the export realisation period from 9 months to 15 months. The revision applies to SEZs, EOUs, status holder exporters, and units operating under STP, EHTP, and BTP schemes, creating uniformity in compliance timelines. The RBI has also amended Regulation 15 to permit exporters up to three years to complete shipments against advance payments, compared to the earlier one-year limit. These changes are expected to ease documentation pressure, support long-cycle export contracts, and reduce FEMA-related compliance risks, particularly for high-value or custom-manufactured export orders. Industry specialists note that the extended timeframes may enhance India’s global trade competitiveness and strengthen foreign exchange realisation predictability. (RBI Notification)
🟩 RBI and ECB Advance UPI-TIPS Link | The Reserve Bank of India announced that it has entered the realisation phase with the European Central Bank and NPCI International Payments Limited to operationalise the proposed UPI–TIPS cross-border payments system. The linkage will connect India’s Unified Payments Interface with the TARGET Instant Payment Settlement platform operated by the Eurosystem, aiming to enable seamless and low-cost remittances between India and the Eurozone. The next phase will focus on technical integration, settlement design and risk management frameworks to ensure secure interoperability between the two systems. Once fully operational, the mechanism is expected to significantly benefit users, including migrants, travellers and businesses, by reducing transaction costs and settlement delays. (Press Release)
Customs and foreign trade
🟩 CBIC Launches ICEGATE 2.0 Module | The Central Board of Indirect Taxes and Customs has operationalised a new online module on ICEGATE 2.0 for processing applications under Section 65 of the Customs Act, 1962. The module enables digital submission and approval of permissions for MOOWR warehouses licensed under Section 58 and MOOSWR facilities licensed under Section 58A. CBIC has also released detailed trade and departmental user manuals on the ICEGATE portal to guide applicants through the filing workflow. Customs field formations have been instructed to publish designated port codes for receiving applications and ensure a smooth transition to the electronic system. Support channels have been made available through the ICEGATE helpdesk and escalation mechanism for departmental users. (Economic Times)
Payroll and personal finance
🟨 Labour Codes Now Enforced | The Government of India has made the four consolidated Labour Codes effective from November 21, 2025, replacing 29 earlier labour laws to create a unified regulatory framework. The Code on Wages, Industrial Relations Code, Code on Social Security and Occupational Safety, Health and Working Conditions Code introduce mandatory appointment letters, a national floor wage and extended social security, including PF, ESIC and insurance for all workers, including gig and platform workers. Employers will be required to provide free annual health check-ups for workers above 40 years, ensure night-working provisions for women with adequate safety, and release salaries to IT and ITES employees by the 7th of each month. Fixed-term employees will now receive full parity with permanent staff, including gratuity after one year instead of five, and aggregators must contribute one to two per cent of turnover toward gig worker benefits. (Press Information Bureau)