“Finance Act, 2025: 7 Key Amendments That Will Impact You”

The Finance Act, 2025 brings significant amendments to the CGST, IGST, and Income-tax Acts.

The most discussed change is the clarification of Input Service Distributor (ISD) provisions — enabling ISDs to distribute Input Tax Credit (ITC) even for reverse charge mechanism (RCM) supplies. This eliminates ambiguity and ensures seamless inter-branch credit flow.

Other noteworthy updates include:

  • Expansion of “local authority” definitions for administrative clarity.
  • Streamlined GST refund and compliance processes.
  • Strengthened provisions for digital audit trails in income-tax administration.

For corporates and consultants, this Act signals the government’s emphasis on data consistency, credit transparency, and reduced litigation — a move aligning tax systems with digital India’s ethos.

“GST 2.0 Is Here: How the 2025 Reforms Will Transform Indian Businesses”

The 56th GST Council Meeting (September 2025) unveiled what is being called “GST 2.0” — a long-awaited reform to simplify India’s indirect tax system.

The core highlights:

  • A three-rate structure: 5%, 18%, and 40% (luxury/sin goods).
  • Simplified compliance for MSMEs, including quarterly returns with auto-populated ITC.
  • Revised MRP guidelines effective September 22, 2025.
  • Real-time credit reconciliation under the GST Invoice Management System.

For small taxpayers, GST 2.0 is a breath of relief — with reduced filing frequency, automated reconciliation, and less manual intervention. Businesses holding unsold stock before September must revise MRPs in line with new slabs.

“Income-tax Act, 2025: What Every Taxpayer Must Know Before April 2026”

The Income-tax Act, 2025, as announced by the Direct Taxes Committee (DTC) of ICAI, marks a generational shift in India’s tax framework. Slated to come into force from 1st April 2026, this reform aligns India’s direct taxation with modern compliance, digital governance, and international best practices.

The DTC’s publication, “Income-tax Act, 2025 including Tabular Mapping vis-à-vis the Income-tax Act, 1961”, helps taxpayers and professionals transition smoothly from the 1961 framework. The new Act aims to simplify compliance, reduce litigation, and adopt a uniform digital reporting ecosystem.

Some key expected highlights include:

  • Rationalized slab rates and deductions: aligning with the government’s push toward a simplified new tax regime.
  • Streamlined tax audit and reporting: leveraging the revised Guidance Note under Section 44AB for AI-enabled compliance checks.
  • Digital-first administration: all returns, appeals, and notices to be digitally traceable under e-assessment provisions.

For professionals, the biggest advantage lies in predictability — a move from interpretative complexity to codified clarity. As April 2026 approaches, businesses must start gap assessments of internal systems to align with new audit thresholds and disclosure formats.