🟩 Government to Track GST Reform Benefits | The Centre has directed authorities to submit monthly price reports for 54 commonly used goods, including toothpaste, shampoo, butter, TVs, cement, and ice cream, to ensure manufacturers pass on reduced GST rate benefits to consumers. Field officials must submit the first report, detailing commodity, brand, and MRP changes since the revamped GST’s rollout on September 22, by the month-end, with monthly submissions for six months. The simplified GST now features two rates, 5% and 18%, plus a 40% slab for luxury and sin goods. Nearly 3,000 complaints about non-compliance have been logged, and the Central Consumer Protection Authority will act against violators under the Consumer Protection Act, 2019. (Hindustan Times)
🟨 Government Scrutinises E-Commerce Price Hikes Despite GST Cuts | Following numerous public complaints about price increases on some products, the government has sent queries to select e-commerce platforms to explain the higher prices despite GST 2.0 rate cuts effective from September 22. Officials are monitoring price changes across 54 categories, including FMCG, food, medicines, cement, and white goods, with monthly reports mandated to the CBIC. Although most items show price reductions, some remain unadjusted due to unsold stock. Nearly 3,000 GST-related complaints have been recorded on the National Consumer Helpline. The anti-profiteering mechanism under GST transitioned from the National Anti-Profiteering Authority to the Competition Commission of India and GST Appellate Tribunal, with the anti-profiteering clause set to sunset on April 1, 2025. (Hindustan Times)
Goods and services tax
🟩 New Changes in Invoice Management System (IMS) Effective October | The GST portal’s Invoice Management System (IMS) is being updated, effective from the October tax period for records filed by suppliers after the rollout, to simplify compliance. Key updates include a new “Pending” action for specified records, namely, Credit Notes and certain downward amendments of Invoices/Debit Notes/ECO documents, allowing taxpayers to defer action for one tax period (one month for monthly filers, one quarter for quarterly filers). Crucially, the system now provides a facility to declare the actual amount of Input Tax Credit (ITC) availed and the corresponding amount required to be reversed; this clarifies that no reversal is warranted if ITC was not availed, and reversal is limited only to the extent of partial availment. Finally, an optional facility will be rolled out shortly to allow taxpayers to save remarks when taking ‘reject’ or ‘pending’ action on records, which will be visible in the recipient’s GSTR-2B and the supplier’s Outward Supplies dashboard for better communication and corrective action. (Goods and Services Tax Network)
🟩 GST Collection Rises 9.1% to Rs 1.89 Lakh Crore in September 2025 | India’s gross GST collections for September 2025 reached INR 1.89 lakh crore, marking a 9.1% year-on-year increase and sustaining revenues above INR 1.8 lakh crore for the ninth consecutive month. Despite the rate cuts effective from September 22 under GST reforms, net collections rose by 5% to INR 1.6 lakh crore due to a 40% surge in refunds. The collection includes INR 33,645 crore as central GST, INR 41,836 crore as state GST, INR 1,01,883 crore as integrated GST, and INR 11,941 crore cess. The growth reflects both domestic consumption and import activity, with import GST rising 15.6%. Authorities highlight the stable refund processes and efficient credit management that supported robust inflows amid the GST rate rationalisation (Financial Express)
🟩 Relief from GST Annual Return Filing | Starting FY 2024-25, small businesses and professionals with an aggregate turnover up to Rs 2 crore are exempted from filing GST annual returns (GSTR-9), reducing compliance burdens and associated costs. This exemption, notified on September 17, 2025, aims to ease tax filing processes for smaller taxpayers while allowing the GST administration to focus on larger businesses. However, this also removes an opportunity for taxpayers to self-correct errors from monthly or quarterly filings. A new table (6A1) in GSTR-9 has been introduced to enhance clarity and transparency in input tax credit claims, helping both taxpayers and tax officers in reviews and minimising litigation risks. (Economic Times)
Income tax
🟩 CBDT Extends Tax Audit Report Due Date to October 31, 2025 | The Central Board of Direct Taxes (CBDT) has extended the due date for filing various Income Tax Audit Reports for the Financial Year 2024-25 (Assessment Year 2025-26) from the original deadline of September 30, 2025, to October 31, 2025. The extension, announced in a press release on September 25, 2025, was made in response to representations from professional bodies, including Chartered Accountant associations, and submissions before various High Courts, citing difficulties faced by taxpayers and practitioners due to issues like floods and natural calamities. The deadline applies to assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act, 1961, which includes businesses and professionals subject to a mandatory tax audit under Section 44AB. (Economic Times)
Corporate and allied laws
🟨 Premium-Based Model for Order-to-Trade Ratio (OTR) in Options | SEBI is revising how the order-to-trade ratio (OTR) is calculated for options, shifting from the current strike-price-linked method to one based on option premiums. Under the new framework, only orders exceeding ±40% of the option premium or INR 20 (whichever is higher) will count toward OTR computation. OTR measures the ratio of total orders, including modifications and cancellations, to actual executed trades by algorithmic trading members. The change aims to curb excessive low-value or manipulative orders that distort prices or congest exchange systems. SEBI plans to exclude orders from designated market makers and has dropped complex theoretical pricing models after industry feedback. The proposal is under further review and will also increase penalties for OTR violations to enhance market discipline. (The Hindu BusinessLine)
Finance and banking
🟥 Banks Revamp Underwriting as MSME Loan Delinquencies Rise | Banks and NBFCs are revising their underwriting models in response to increasing delinquencies in the micro, small, and medium enterprise (MSME) sector, especially in smaller loan segments. Lenders are adopting more sophisticated credit assessment techniques by incorporating alternative data sources such as GST filings, cash flow patterns, verified business transactions, utility bill payments, digital footprints, and supply chain information. Additionally, the presence of multiple unsecured loans in a borrower’s portfolio is being closely scrutinised to better evaluate credit risk. (Financial Express)
Customs and foreign trade
🟩 CBIC Mandates Two-Year Deadline for Customs Assessments | The Central Board of Indirect Tax and Customs (CBIC) has set a two-year time limit for the completion of all customs provisional assessments, formalising a measure announced in the FY26 budget. These new guidelines, which specify timelines and procedures for finalising provisional assessments under the Customs Act, are expected to be a game-changer, providing certainty, clarity, and reduced compliance costs for businesses, while unlocking working capital currently tied up. Additionally, the new rules permit businesses to make voluntary duty payments during the provisional assessment phase, which can be adjusted against the final duty. (Economic Times)
🟩 DGFT Amends End-User Certificate Rules for Restricted Imports | The Directorate General of Foreign Trade (DGFT) has amended Para 2.35 of the Handbook of Procedures 2023, effective immediately, to empower Regional Authorities (RAs) to issue End-User Certificates (EUCs) not only for freely importable items but also for restricted import items. For restricted goods, issuance of EUCs is contingent upon DGFT having granted a valid restricted authorisation, with the EUC strictly limited to the approved quantity and value. This amendment streamlines the process, providing clarity and facilitating importers facing foreign government requirements for EUCs as export preconditions. The change enhances compliance ease while ensuring adherence to DGFT’s import controls. (Directorate General of Foreign Trade)
🟩 India Notifies Customs Tariff Rules for Origin of Goods | The Ministry of Finance has introduced the Customs Tariff (Determination of Origin of Goods under the Trade and Economic Partnership Agreement between India and the EFTA States) Rules, 2025, effective October 1, 2025. These rules provide the legal framework to identify if goods imported from EFTA States (Iceland, Liechtenstein, Norway, Switzerland) qualify for preferential tariff treatment under the Trade and Economic Partnership Agreement (TEPA). Origin criteria include goods wholly obtained or sufficiently processed in a Party, with a 10% tolerance on non-originating materials. The rules cover proof of origin documentation, such as origin declarations, EUR.1 movement certificates, or Certificates of Origin valid for 12 months, and outline direct transport requirements. A detailed verification process ensures timely and fair checks of origin claims to facilitate smooth trade benefits under TEPA. (The Hindu BusinessLine)
Payroll and personal finance
🟨 Small Savings Schemes Interest Rates Unchanged for Q3 FY 2025-26 | The Government of India, through the Ministry of Finance, has announced that interest rates on various Small Savings Schemes will remain unchanged for the third quarter of the financial year 2025-26. As per the Office Memorandum dated September 30, 2025, rates for schemes such as Savings Deposit (4%), one-year and two-year time deposits (6.9% and 7.0%), five-year time deposit (7.5%), Senior Citizen Savings Scheme (8.2%), National Savings Certificate (7.7%), Public Provident Fund (7.1%), and Kisan Vikas Patra (7.5%) will continue as in the second quarter. The Sukanya Samriddhi Yojana remains at 8.0%, unchanged from a slight reduction last quarter. (Financial Express)