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The Centre issues revised guidelines for the GST Appellate Tribunal.

New Delhi, The government has notified the Goods and Services Tax Appellate Tribunal (GSTAT) (Procedure) Rules which make it online filing of applications mandatory, provide for hybrid hearings and listing of cases on an urgent basis steps that will make the adjudication process simpler for businesses.

The notification states that the rules come into effect from April 24, 2025, and the GSTAT portal has already gone live.

The move marks a major step in streamlining tax litigation under the GST regime. Under the new rules, all appeals and applications must be filed digitally via the official GSTAT portal.

The framework, laid out in 15 chapters, covers procedures from the admission of appeals to hearings and final orders. The Tribunal will allow hybrid hearings — either in person or through video conferencing — as approved by the Tribunal President.

It has also set strict timelines and said that urgent appeals filed by noon can be listed on the next working day and late filings by 3 p.m. can also be listed with permission on the next working day.

Respondents will have to reply within one month and applicants can file a rejoinder also within one month. The tribunal will issue ordered within a period of 30 days from the date of the final hearing, excluding holidays.

The tribunal will sit on all working days from 10.30 a.m.-1.30 p.m. and 2.30 p.m.-4.30 p.m., with possible extensions while the office remain open from 9 a.m. to 6 p.m. on working days.

A daily cause list will be posted online and on notice boards, prioritising order pronouncements, clarifications, and admissions.

Experts are of the view that on online filings would reduce delays and help in faster resolution of tax disputes.

The GSTAT is the Appellate Authority under the GST Act to hear appeals on tax disputes against the orders passed by the Appellate or Revisional authorities. Its Principal Bench is based in New Delhi and has 31 State Benches located across the country, with sittings in 44 different locations

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New Tax Rule: No Deductions for Compromise with Regulators

No tax deduction can be claimed for settling legal proceedings under four laws including Securities and Exchange Board of India Act, 1992; the Securities Contracts (Regulation) Act, 1956; the Depositories Act, 1996; and the Competition Act, 2002. The central board of direct taxes(CBDT) in a notification issued April 23 clarified that from April 1, no such deduction can be claimed.

Last year, the Centre had made amendments in the Finance Act, 2024 under Section 37 of the act.

Experts  said, “The deductibility of settlement payments under Section 37(1) of the Income-tax Act, 1961, has long been a subject of judicial debate, particularly in cases like Income Tax Officer v. Reliance Share & Stock Brokers, where consent fees paid to Sebi were allowed as business expenditure on grounds of commercial expediency.”

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New IT Bill Grants Authorities Access to Social Media and Digital Communications

The income tax department may be able to legally access people’s social media accounts, personal emails, bank accounts, online investment accounts, trading accounts, and more if they suspect tax evasion

This is apart from the other conferred powers such as the powers to break open the lock of any door, box, locker, safe, almirah, or other receptacle for exercising the powers conferred by clause” and “to enter and search any building, place, etc., where the keys thereof or the access to such building, place, etc., is not available.”
This is because Clause 247 of the new income tax bill gives tax authorities the power to “gain access by overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available.”

 

This is apart from the other conferred powers such as the powers to break open the lock of any door, box, locker, safe, almirah, or other receptacle for exercising the powers conferred by clause” and “to enter and search any building, place, etc., where the keys thereof or the access to such building, place, etc., is not available.”

The bill explicitly defines “virtual digital space” as follows:

(i) email servers

(ii) social media account

(iii) online investment account, trading account, banking account, etc

(iv) any website used for storing details of ownership of any asset

(v) remote server or cloud servers

(vi) digital application platforms

(vii) any other space of similar nature

Which officers are authorised to do this?

The bill defines the term “authorised officer” as follows:

(i) the Joint Director or the Additional Director

(ii) the Joint Commissioner or the Additional Commissioner

(iii) the Assistant Director or the Deputy Director

(iv) the Assistant Commissioner or the Deputy Commissioner

(v) the Income-tax Officer or the Tax Recovery Officer

Privacy violation concerns

Experts said, “The proposed provision allowing tax officers to access private social media and email accounts raises significant concerns under the fundamental right to privacy, as upheld in the landmark Puttaswamy judgment by the Supreme Court.”

“Additionally, such an unchecked mechanism could raise questions under Article 19(1)(a), impacting the freedom of speech and expression, particularly if individuals fear surveillance on their private conversations,” he said.

“In an era where digital rights are closely tied to fundamental freedoms, the government must ensure that taxation enforcement does not come at the cost of constitutional safeguards,” he added.

Meanwhile, Sohail Hasan, advocate, the Delhi high court called the bill, “groundbreaking and highly controversial.”

“Under the guise of tax enforcement, this bill hands authorities shockingly unchecked power to pry into private virtual assets, rummage through emails, and infiltrate social media accounts—all under loosely defined ‘specific circumstances.’ Critics warn that this marks an unprecedented intrusion, a dystopian overreach that could redefine personal privacy as we know it, all in the name of cracking down on tax evasion,” he added.

Experts said that “the broad powers could lead to intrusive actions, including political profiling or misinterpretations—such as associating exotic foreign travel or gifts with disproportionate income levels.”

“There is also a chilling effect on free expression, as taxpayers may hesitate to freely post on social media, fearing their content could be used against them in tax investigations,” she added.

Constitutional violation concerns

Experts said, “The proposed income tax bill provision allowing access to social media and emails raises serious privacy and constitutional concerns.”

“It threatens to erode personal autonomy under Article 21 and freedom of expression under Article 19(1)(a),” he said. “The broad and ambiguous criteria for such access circumvent safeguards established by the Supreme Court in various cases including People’s Union for Civil Liberties (PUCL) v. Union of India, which mandates a legally established procedure for communication interception.”

He further added that “robust safeguards, including judicial oversight, are essential to prevent abuse and uphold democratic principles” and that “in the absence of judicial oversight or specific procedural safeguards, this provision risks becoming a tool for arbitrary scrutiny rather than a structured tax enforcement mechanism.”

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Net direct tax collections grow by 13.57% year-on-year in FY25.

India’s direct tax collections, in gross terms, have witnessed a robust growth of 15.59 per cent year-on-year, reaching Rs 27.02 lakh crore in the financial year 2024-25, data released by the Central Board of Direct Taxes (CBDT) showed. In 2023-24, it was Rs 23.38 lakh crore.

This rise in collections is attributed to higher corporate and non-corporate tax revenues, as well as a significant surge in securities transaction tax (STT) receipts.

Corporate tax collections rose to Rs 12.72 lakh crore, up from Rs 11.31 lakh crore in the previous fiscal.

The Non-corporate tax collections surged to Rs 13.73 crore from Rs 11.68 lakh crore last fiscal year.

Securities transaction tax (STT) collections witnessed a sharp increase, reaching Rs 53,296 crore, compared to Rs 34,192 crore in the previous year.

Direct taxes are the taxes that individuals and businesses pay directly to the government. They include income tax, Corporate Tax, and Securities transaction tax.

Other taxes, including wealth tax, saw a decline from Rs 4,068 crore to Rs 3,366 crore.

After accounting for refunds, which also saw a significant jump of 26.04 percent to Rs 4.76 lakh crore, the net direct tax collection stood at Rs 22.26 lakh crore in 2024-25, reflecting a 13.57 percent increase compared to Rs 19.60 lakh crore in the same period last year.

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CBIC to issue GST registration within 7 days; ‘risky’ businesses may take up to 30 days.
New Delhi, April 18 (IANS) The Central Board of Indirect Taxes (CBIC) has issued revised instructions to the officers for processing GST registration applications, that will reduce compliance burden on taxpayers and facilitate rule-based transparency, it was announced on Friday.New Delhi, Businesses will be able to get GST registration within 7 days, while applications flagged as risky will be processed within 30 days after physical verification of the premises. Observing that some field officers are seeking various “unwarranted documents” by raising “presumptive queries”, the CBIC gave an “indicative list” of the documents which officers can seek online from businesses. “While processing registration application, query should not be raised by the officer seeking original physical copy of these documents,” said the CBIC’s revised instruction for granting GST registration.

The Central Board of Indirect Taxes and Customs (CBIC) said it has received complaints regarding difficulties being faced in getting a GST registration, mainly on account of nature of clarifications being sought by the officers and seeking of additional documents, which are not prescribed by the Board

In cases where premises are rented, the applicant is required to upload the valid Rent/Lease agreement along with any one of the documents relating to PPOB.

With regard to documents related to ‘constitution of business’, the CBIC said where the applicant is one of the partners, Partnership Deed for the proof of constitution of business is required to be uploaded by the applicant.

No additional document like Udhyam certificate, MSME certificate, shop establishment certificate, trade license etc. should be sought from the applicant, it added.

The CBIC said some of the common queries that are being raised by the field officers currently and are causing hardship for taxpayers include residential address of the applicant/Managing Director/Authorized Signatory is not in the same city or the state where the registration has been sought; activities mentioned in the registration application can not be conducted from the particular premises etc.

“Officers handling registration applications should not ask any presumptive query which is not related to the documents or information submitted by the applicant,” the CBIC said.

The CBIC also asked the field officers to carefully examine and check completeness of the registration application, and cross verify the authenticity of the documents furnished as proof of address from the publicly available sources, such as websites of the concerned authorities such as land registry, electricity distribution companies, municipalities, and local bodies, etc

“Where applications have not been flagged as risky on the common portal based on data analysis and risk parameters, and the same are found to be complete and without any deficiency, the officers should approve the application within 07 working days of submission of application,” it said.

Registration shall be granted within 30 days of submission of application after physical verification of the place of business in case where the applicant has undergone authentication of Aadhaar number and is flagged as risky on the common portal based on the data analysis and risk parameters; or fails to undergo authentication of Aadhaar number; or the officer deems it fit to carry out physical verification of place of business.

Experts said this instruction eliminates discretionary practices, reduce registration delays, eliminate avoidable rejections, and ensure fair treatment of applicants-particularly for businesses operating from shared or rented premises, startups, and proprietorships.

“By explicitly disallowing officers from demanding documents beyond the prescribed list or raising presumptive and irrelevant queries, the instruction curbs administrative overreach. The inclusion of clear timelines for approval, a structured framework for physical verification, and the acceptance of alternative documents like consent letters and utility bills are among the key reforms that will directly benefit taxpayers,” Expert added.

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Central Board of Indirect Taxes and Customs Notifies the GST Appellate Tribunal (Procedure) Rules, 2025

The Ministry of Finance has officially notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, through Gazette Notification dated April 24, 2025. These rules, framed under Section 111 of the CGST Act, 2017, aim to streamline the functioning and procedures of the GST Appellate Tribunal (GSTAT) across India.

Key Features of the GST Appellate Tribunal (Procedure) Rules, 2025

1. Online Filing of Appeals

  • All appeals must be filed electronically through the GSTAT portal only.
  • Manual filing will be allowed only in exceptional cases with the Registrar’s approval.

2. Mandatory Documentation

  • Certified copies of the original orders are required to be submitted with appeals.
  • Specific forms must be used for applications (e.g., GSTAT FORM-01 for interlocutory applications, GSTAT FORM-05 for appeal filing).

3. Defined Timelines

  • Timelines for filing appeals and responses are clearly laid out.
  • The Tribunal has the power to condone delays if justified with valid reasons.

4. Tribunal Working Hours

  • Hearings will be held from 10:30 AM to 1:30 PM and 2:30 PM to 4:30 PM.
  • Office working hours are 9:30 AM to 6:00 PM on all working days.

5. Cause Lists and Proceedings

  • Daily cause lists will be published on the portal for transparency.
  • If any party fails to appear, the Tribunal may proceed with ex parte hearings.

6. Evidence and Hearings

  • Additional evidence will be accepted only with prior permission from the Tribunal.
  • By default, hearings will be public, ensuring transparency.

7. Representation

  • Authorized representatives must file a Power of Attorney in GSTAT FORM-04.
  • Representatives include advocates, CAs, CMAs, and CSs, among others, as permitted by law.

8. Final Orders

  • Final orders must be signed by the bench and uploaded on the portal.
  • Certified copies will be made available to the concerned parties.

9. Tribunal Powers

  • The Tribunal is empowered to summon documents or witnesses if necessary for adjudication.

 

Why haven’t the ITR forms for FY 2024–25 (AY 2025–26) been released yet?

As of April 2025, the Income Tax Department has not yet notified the Income Tax Return (ITR) forms for the Financial Year 2024–25 (Assessment Year 2025–26). This delay has raised questions among taxpayers and professionals, especially since policies and tax structures for the year were already declared in advance through the Budget.

📅 Important Filing Deadlines for AY 2025–26
While forms are pending notification, the due dates for filing ITR remain as per the existing schedule unless changed by a future circular:

  • 31st July 2025 – For individuals and entities not requiring audit
  • 31st October 2025 – For businesses or professionals requiring audit
  • 30th November 2025 – For entities requiring audit and also subject to TP (Transfer Pricing) provisions

🔹 Technical or Portal-Readiness Issues
One of the more probable causes for the delay is backend readiness:

  • The Income Tax e-Filing portal may still be undergoing updates to accommodate form changes or integration.
  • Utility tools (JSON/Java/Excel versions) used by taxpayers and software vendors might still be under development and testing.
  • The government may also be working on ensuring seamless syncing with AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) for pre-filled return data.

🔹 Pending Compliance Alignment
Recent years have seen the introduction of new reporting standards, such as:

  • Cryptocurrency/VDAs disclosures
  • Foreign income and assets reporting
  • New rules on capital gains reporting in detailed schedules

Ensuring that ITR forms are aligned with such granular disclosures requires careful form design and review, which can delay final notification.

🔹 Possible Delay in Release Strategy
It’s also possible that the department is opting for a staggered release approach, where:

  • Forms for simpler returns (ITR-1, ITR-4) are released first
  • Detailed or complex forms like ITR-2, 3, 6 follow later
  • However, even this phased strategy hasn’t started yet, indicating a likely bottleneck in the approval or technical finalization stages.

Given the lack of structural changes in tax law for FY 2024–25, the delay in notifying ITR forms is most likely due to internal technical or procedural processes.

UPI transactions No GST on over ₹2000, clarifies Ministry of Finance
The Finance Ministry on Friday made it clear that the government is not considering any proposal to levy Goods and Services Tax (GST) on UPI transactions over ₹2,000.

NEW DELHI: The claims that the government is considering levying Goods and Services Tax (GST) on UPI transactions over ₹2,000 are completely false, misleading, and without any basis, said the Ministry of Finance in a statement Friday.

 

Currently, there is no such proposal before the government, the Finance Ministry clarified.

GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.

Effective January 2020, the Central Board of Direct Taxes (CBDT) removed the Merchant Discount Rate (MDR) on Person-to-Merchant (P2M) UPI transactions through a Gazette Notification dated December 30, 2019.

Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions.

The government remains committed to promoting digital payments via UPI, the Finance Ministry said.

To support and sustain the growth of UPI, an incentive scheme has been operational from 2021-22.

This scheme specifically targets low-value UPI (P2M) transactions, benefiting small merchants by alleviating transaction costs and promoting wider participation and innovation in digital payments.

The total incentive payouts under this scheme over the years reflect the government’s sustained commitment to promoting UPI-based digital payments.

Allocation under the scheme over the years has been: FY2021-22: ₹1,389 crore; FY2022-23: ₹2,210 crore; and FY2023-24: ₹3,631 crore.

“These measures have significantly contributed to India’s robust digital payments ecosystem,” the ministry said.

According to the ACI Worldwide Report 2024, India accounted for 49 per cent of global real-time transactions in 2023, reaffirming its position as a global leader in digital payments innovation.

UPI transaction values have seen an exponential increase, growing from ₹21.3 lakh crore in 2019-20 to ₹260.56 lakh crore by March 2025. Specifically, P2M transactions have reached ₹59.3 lakh crore, reflecting growing merchant adoption and consumer confidence in digital payment methods.

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Big relief for flat owners: Exchanging Old Flat for New? You’re Not Liable for Tax, Says ITAT Mumbai

If your residential building or society is set to undergo redevelopment anytime soon, or you have agreed to exchange your current accommodation with your builder or developer for a redeveloped, new residence, you have some reason to rejoice!

A recent verdict by the bench members B.R Baskaran (accountant member) and Sandeep Gosain (judicial member) of the Mumbai ITAT (Income Tax Appellate Tribunal) held that receiving a new flat in an ongoing redevelopment residential project in lieu of erstwhile existing residential flat is not taxable under Section 56 of the Income Tax act, which deals with income under the head of “income from other sources.”

Per the bench, this exchange is merely the “extinguishment of rights in the old flat” and would not amount to “receipt of immovable property for inadequate consideration.” In other words, merely the exchange of an old flat for a new one does not give rise to any taxable income.

Notably, Section 56(2)(x)(b) of the Income Tax Act, 1961, notes that any immovable property received, the stamp duty value of which exceeds Rs 50,000, will be taxed under the head ‘Income from Other Sources.

Explains Experts, “This judgment would certainly be beneficial to homeowners in the future who would consider swapping their existing homes with the luxurious apartments in the new residential project. Although the extinguishment of the old flat and receipt of new property instead of the old flat does not give rise to a taxable event, the sale of new property in the future would entail capital gains tax implications.”

This can also potentially pave the way for city residents to exchange their old houses for new, luxury apartments at minimal cost.

Says Experts, “The Tax Department was wrong in its interpretation of the law, as Section 56(2)(x) is for gifts, and in the case of redevelopment projects, the old flat owner does not get that new flat as a free gift, but it is in exchange for the old flat, which has been surrendered. The recent ITAT judgment rightly pointed out that this transaction will not be treated as a gift, and hence, the question of it being taxed under the head “ Income from other sources” does not arise.

Expert further clarifies that “ITAT mentioned in the order that this transaction may be taxed under the head capital gains. In cases of residential house capital gain sales, taxpayers can get a Section 54 exemption if they purchase/construct another from the capital gain amount.”

In this case, ITAT pointed out that the gain from this transaction will be deemed to be invested under Section 54, so there will not be any tax liability even if the above income is taxed under the head of capital gain. “This clarification from ITAT in the order will bring much-needed clarity in the redevelopment projects tax litigations faced by flat owners,” adds Expert

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Tax officials clarify: GST on housing society maintenance has existed since 2019.

Amid rising concerns and confusion among apartment residents, tax officials have clarified that the Goods and Services Tax (GST) on apartment maintenance charges is not a new rule.

It is an existing regulation that has been in place since 2019, they maintained.

The clarification comes as housing societies across the country witness growing panic and debate, especially on social media and in community meetings.

As per a NDTV Profit report, the Central Board of Indirect Taxes and Customs (CBIC) had, in 2019, directed that flat owners must pay 18 per cent GST on maintenance charges if the amount paid to their Resident Welfare Association (RWA) exceeds Rs 7,500 per month.

This has been a long-standing rule, but it has recently come back into the spotlight due to stricter compliance efforts by tax officials.

However, a 2021 ruling by the Madras High Court brought some relief. The court ruled that GST should be charged only on the portion of the maintenance amount that exceeds Rs 7,500 — not on the full amount.

This ruling effectively overruled a 2019 circular issued by the CBIC and a decision by the Authority for Advance Rulings (AAR), which had stated that if the monthly charges exceeded Rs 7,500, then GST would apply on the entire amount, and not just the excess.

Importantly, the tax department has not appealed the Madras High Court judgment in any higher court so far.

This means the ruling stands, but it may not be followed uniformly across all states. Some tax authorities may still choose to go by the original CBIC interpretation, the report said.

Currently, RWAs are required to collect 18 per cent GST on monthly maintenance charges only if two specific conditions are met: the per-apartment monthly maintenance exceeds Rs 7,500, and the society’s annual turnover is more than Rs 20 lakh.

If both these conditions apply, then the housing society must register under GST and charge tax on the entire maintenance amount, it added.

The report also said that many apartment complexes in big cities are still not following this rule. As a result, the tax department is now urging RWAs to comply and ensure proper tax payments.

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