Important Update for All Employees! The New Labour Codes 2025 and All Four Revised Labour Laws Are Now in Effect

On 21 November 2025, the Ministry of Labour & Employment announced the long-awaited implementation of all four Labour Codes — a transformative consolidation of 29 Central labour laws into four simplified, modern, and comprehensive Codes:

  1. Code on Wages, 2019
  2. Industrial Relations Code, 2020
  3. Code on Social Security, 2020
  4. Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

This landmark move modernises India’s labour framework, improves worker protection, simplifies compliance for industries, and aligns India with global labour standards — a major reform supporting Aatmanirbhar Bharat.

 

Why Labour Reforms Were Needed

Most existing labour laws were drafted between 1930 and 1950, when the nature of work, employer–employee relationships, and industry structures were vastly different. Over the years, global economies have consolidated and upgraded their labour laws, but India continued to function under fragmented, outdated, and complex regulations.

Challenges under the old regime included:

  • Multiple registrations and returns
  • Unequal wage protection
  • Limited coverage of PF, ESIC, and social security
  • Restrictions on women’s employment
  • High compliance burden on MSMEs
  • Lack of protection for gig, platform, and fixed-term workers

The new Labour Codes bring a uniform, transparent, and technology-driven labour ecosystem that strengthens both worker welfare and industrial productivity.

Before vs After: Key Transformations Under the Four Labour Codes

The following table summarises the shift from the old system to the new labour regime:

1. Formalisation of Employment

  • Earlier: Appointment letters not mandatory
  • Now: Mandatory written appointment letters for all workers → transparency, job security, formal recognition

2. Social Security Coverage

  • Earlier: Limited coverage; gig/platform workers not recognised
  • Now: PF, ESIC, insurance & other benefits available to all workers, including gig & platform workers

3. Minimum Wages

  • Earlier: Applied only to scheduled industries; many workers excluded
  • Now: Statutory minimum wages for all workers under the Code on Wages

4. Preventive Healthcare

  • Earlier: No mandatory annual check-ups
  • Now: Free annual health check-up for all workers aged 40+

5. Timely Payment of Wages

  • Earlier: No uniform requirement
  • Now: Mandatory timelines for wage payment → enhanced financial stability

6. Women in Workforce

  • Earlier: Restrictions on night shifts and certain occupations
  • Now: Women permitted in all jobs and night shifts with consent & safety measures → equal opportunities

7. ESIC Coverage

  • Earlier: Limited to notified areas & certain industries
  • Now:Pan-India coverage, including:
    • Voluntary for establishments < 10 employees
    • Mandatory for even 1 worker in hazardous units

8. Compliance Burden

  • Earlier: Many licences, separate registrations, multiple returns
  • Now: Single registration, single licence, single return → low compliance burden

Sector-wise Benefits Under the Labour Codes

1. Fixed-Term Employees (FTE)

  • FTEs get all benefits equal to permanent workers
  • Gratuity eligibility after 1 year (instead of 5 years)
  • Equal wages & better protection
  • Encourages direct hiring, reduces contract labour exploitation

2. Gig & Platform Workers

For the first time, the Codes legally define:

  • Gig workers
  • Platform workers
  • Aggregators

Key provisions:

  • Aggregators to contribute 1–2% of annual turnover (capped at 5% of worker payouts)
  • Aadhaar-linked Universal Account Number ensures portability of benefits across states

On 21 November 2025, the Ministry of Labour & Employment officially confirmed that the long-discussed labour law overhaul is now a reality. India has put into force all four new Labour Codes, replacing 29 separate Central labour laws with a unified, updated, and simplified framework. These four Codes are:

  • Wages Code, 2019

  • Industrial Relations Code, 2020

  • Social Security Code, 2020

  • Occupational Safety, Health & Working Conditions Code, 2020

This marks one of the biggest reforms in India’s labour system, aimed at strengthening worker rights, reducing compliance burden for employers, and bringing India’s labour ecosystem in line with international standards—supporting the government’s broader push towards Aatmanirbhar Bharat.

(Click here for the official press release.)

Why Did India Need These New Labour Codes?

For decades, India relied on labour laws written in the early to mid-20th century. These laws were created for an era with different industries, limited technology, and a smaller workforce. As the economy grew, these outdated laws became complex, overlapping, and difficult to comply with.

The old system had several issues:

  • Multiple registrations and numerous return filings

  • Minimum wage inconsistencies across sectors

  • Many workers excluded from PF, ESIC, and social security

  • Restrictions on women’s working hours and roles

  • High compliance costs for small and medium businesses

  • No legal coverage for gig workers, platform workers, or fixed-term employees

By replacing 29 laws with 4 broad codes, the government has created a centralised, transparent, and digitally integrated labour system that benefits both workers and employers.

Before vs After: Key Reforms Under the Labour Codes

1. Job Formalisation

  • Earlier: Appointment letters often not issued

  • Now: Appointment letters are compulsory for all workers → better protection & clarity

2. Wider Social Security Access

  • Earlier: Only workers in certain industries were covered

  • Now: PF, ESIC, maternity and other social security benefits extend to all worker categories, including gig and platform workers

3. Universal Minimum Wage

  • Earlier: Minimum wages applied only to specific scheduled sectors

  • Now: Every worker is entitled to statutory minimum wages

4. Health Benefits

  • Earlier: No rule for regular medical check-ups

  • Now: Annual health check-up is mandatory for workers aged 40+

5. Standard Wage Payment Timelines

  • Earlier: No uniform rule

  • Now: Strict deadlines ensure timely payment of wages

6. More Opportunities for Women

  • Earlier: Women faced restrictions in certain jobs and in night work

  • Now: Women can work across all sectors, including night shifts, with consent and safety measures

7. ESIC for All Regions

  • Earlier: ESIC limited to notified areas

  • Now: ESIC available across the country, including:

    • Voluntary coverage for units with <10 workers

    • Mandatory for hazardous establishments even with 1 worker

8. Simpler Compliance Structure

  • Earlier: Many licences, registrations and separate returns

  • Now: Single registration, single licence, single return → easier compliance for businesses

Who Benefits the Most?

1. Fixed-Term Employees (FTEs)

  • Same benefits as permanent staff

  • Eligible for gratuity after 1 year

  • Equal wages and protections

  • Promotes direct hiring instead of contract labour

2. Gig Workers & Platform Workers

For the first time, these categories are legally recognised.

Key features:

  • Aggregator platforms must contribute 1–2% of turnover to social security (capped at 5% of payouts)

  • Workers get Aadhaar-linked Universal Account Numbers ensuring portability of benefits

3. Contract Workers

  • Contract labour will now receive the same social security and health-related benefits as permanent employees.

  • Annual medical check-ups are compulsory.

  • Fixed-Term Employees (FTEs) become eligible for gratuity after completing just one year.

  • The primary employer is accountable for ensuring contractor workers’ welfare.

4. Women Workers

  • Equal pay for equal work is mandated across sectors.

  • Women can work in night shifts, hazardous environments, mining, and heavy machinery—subject to their consent and adequate safety protocols.

  • The definition of “family” now includes parents-in-law.

  • Every workplace grievance committee must include women representatives.

5. Young Workers

  • Minimum wages are guaranteed for youth entering the workforce.

  • Written appointment letters are compulsory.

  • Wages must be paid even when the worker is on leave.

  • A national floor wage ensures a decent standard of living.

6. MSME Workforce

  • All MSME workers fall under the Social Security Code.

  • Minimum wage protection is universal.

  • Employers must provide drinking water, rest spaces, canteens, and basic safety measures.

  • Working hours, overtime rules, and paid leave are standardised.

  • Timely payment of wages is mandatory.

7. Beedi & Cigar Workers

  • Minimum wages apply to all workers in the sector.

  • Working hours capped at 8–12 hours per day and 48 hours weekly.

  • Overtime must be paid at double the regular wage rate.

  • Workers become eligible for bonus after 30 days of employment.

8. Plantation Workers

  • Fully covered under the OSHWC and Social Security Codes.

  • Applicable to plantations with over 10 workers or 5 hectares+.

  • Mandatory safety training, PPE, and safe working conditions.

  • ESIC benefits extend to workers and their families.

  • Education facilities for workers’ children are required.

9. Audio-Visual & Media Personnel

  • Covers journalists, voice artists, stunt performers, and more.

  • Appointment letters are obligatory.

  • Wages must be paid promptly.

  • Overtime compensation at double wages.

  • Full social security coverage is ensured.

10. Mine Workers

  • Travel-related accidents are treated as employment-related (subject to conditions).

  • National occupational safety standards apply.

  • Annual free medical check-ups for all mine workers.

  • Work hours capped at 8–12 hours/day, 48 hours/week.

11. Workers in Hazardous Industries

  • Free annual medical examinations are compulsory.

  • Uniform national safety guidelines must be followed.

  • Women can be employed even in hazardous roles with safeguards.

  • Safety committees must be set up at every hazardous site.

12. Textile Sector Employees

  • Migrant and permanent workers receive equal wages and welfare benefits.

  • Claims for outstanding dues can be filed up to 3 years.

  • Overtime payments are mandatory at double the wage rate.

13. IT & ITeS Employees

  • Salaries must be credited no later than the 7th of every month.

  • Women are permitted night shifts with adequate protection.

  • Grievances on wages and harassment must be resolved swiftly.

  • Appointment letters and equal pay for equal work are compulsory.

14. Dock Workers

  • Appointment letters required for every worker.

  • PF, pension, and insurance benefits apply to contract and temporary workers as well.

  • Employers must fund annual medical check-ups.

  • Hygiene, welfare, and first-aid facilities are mandatory.

15. Export Industry Workers

  • Fixed-term workers entitled to gratuity, PF, and other social security benefits.

  • Eligible for annual leave after 180 days of service.

  • Timely wage payment is compulsory; overtime paid at double the rate.

  • Women can work night shifts with their consent and safety measures.

Additional Major Reforms Under the Labour Codes

  • Introduction of a National Floor Wage across India.

  • Gender-neutral provisions, including protections for transgender workers.

  • Inspector-cum-Facilitator model promoting support before penalties.

  • Faster dispute settlement through upgraded Industrial Tribunals.

  • One licence and one registration for working condition compliance.

  • National OSH Board for safety standard-setting.

  • Mandatory safety committees for establishments with 500+ workers.

  • Higher factory thresholds to ease compliance for smaller units.

Transitional arrangements ensure that earlier laws will continue until notifications under the new Codes are fully operational.

Impact on India’s Social Security Framework

India’s social security coverage increased from 19% (2015) to 64% (2025). The new Codes further strengthen this by ensuring:

  • Universal and portable social security benefits

  • Protection for gig workers, platform workers, migrant labour, women, and young workers

  • Reduced compliance burden on employers

  • Improved job creation and workforce skilling

Conclusion

The implementation of the four Labour Codes is the most significant labour policy transformation in India’s history. It modernises labour governance, enhances worker rights, simplifies compliance for industries, and prepares the workforce for the demands of a fast-evolving economy. This progressive shift strengthens a worker-centric, youth-focused, gender-equal, and employment-driven ecosystem—accelerating India’s path toward a stronger, future-ready, and self-reliant nation.

GSTN set to suspend GSTIN over this compliance violation

GSTN, on 20 November 2025, issued a new advisory emphasizing that taxpayers must furnish their bank account details in accordance with Rule 10A of the CGST Rules, 2017. This obligation covers all registered persons, excluding TCS/TDS applicants and individuals who were granted GST registration through suo-moto action by the department.

What Does Rule 10A of the CGST Rules Mean?

Rule 10A requires that every GST-registered taxpayer—except a few specified categories—must provide their bank account details within 30 days of obtaining GST registration or before filing their first outward supply return (GSTR-1 or IFF), whichever occurs earlier.

Latest Update Issued on 20 November 2025

GSTN has announced that strict enforcement of Rule 10A will soon be activated on the GST portal.

Important points from the advisory:

✔ Mandatory Submission Timeline

Bank account details must be furnished:

  • Within 30 days of receiving GST registration,
    OR

  • Before filing GSTR-1 or IFF,

whichever condition is met first.

✔ Who Needs to Follow This Requirement?

All GST-registered persons except the following:

  • TDS deductors (under Section 51)

  • TCS collectors (under Section 52)

  • Taxpayers who received GSTIN through suo-moto registration (Section 62)

✔ What Happens If You Don’t Update Your Bank Details?

Failure to comply may result in suspension of the GST registration on the portal.

Possible consequences include:

  • Inability to file GST returns

  • Blocking of e-way bill generation

  • Restriction on making outward supplies

  • Risk of cancellation proceedings

Taxpayers are strongly encouraged to update their bank details promptly to prevent any operational or compliance-related disruptions.

Why Has GSTN Issued This Advisory at This Stage?

GSTN has released this clarification due to a growing number of instances where:

  • GST registrations are obtained without any real business operations

  • GSTINs are created without linking a valid bank account

  • Fake invoices are generated even before verification is completed

  • Refunds are claimed without proper banking trails or genuine transactions

By tightening compliance under Rule 10A, GSTN aims to:

✔ Detect fake invoicing networks at an early stage
✔ Prevent fraudulent or non-genuine registrations
✔ Reduce refund frauds and misuse of input tax credit (ITC)
✔ Strengthen taxpayer verification and system reliability

This measure aligns with the Government’s ongoing efforts to enhance the transparency and credibility of the GST framework.

Penalties and Consequences for Not Complying with Rule 10A

If a taxpayer does not update their bank account details within the prescribed timeline, the following actions may occur:

1️⃣ GST Registration May Be Suspended

Your GSTIN will shift to a “Suspended” status, immediately affecting business operations.

2️⃣ GSTR-1 Filing Will Be Blocked

You won’t be able to report outward supplies, which affects your customers and hampers regular business activity.

3️⃣ E-Way Bill Services Will Be Disabled

Movement of goods gets restricted because the portal blocks e-way bill generation.

4️⃣ Department May Issue Notices

The GST department may initiate cancellation proceedings under Rule 21.

5️⃣ Customers’ ITC May Get Affected

If your registration is suspended, the ITC of your buyers may be blocked, leading to disputes and compliance issues.

How to Update Bank Account Details on the GST Portal (Step-by-Step)

Bank details must be updated through a Non-Core Amendment on the GST Portal.

Step 1: Log In

Visit gst.gov.in and sign in using your credentials.

Step 2: Open the Registration Section

Go to:
Services → Registration → Amendment of Registration (Non-Core Fields)

Step 3: Choose the ‘Bank Accounts’ Tab

Enter the following information:

  • Account holder’s name

  • Account number

  • IFSC code

  • Bank name

  • Supporting proof (cancelled cheque/passbook/bank statement)

Step 4: Upload Proof

Make sure the uploaded document clearly shows:

  • Account number

  • Name of the account holder

  • IFSC code

  • Bank name

Step 5: Verify & Submit

Submit the amendment using DSC or EVC.
An ARN will be generated after submission.
If the details match PAN records and GST data, approval is usually automatic.

Which Documents Are Accepted as Valid Proof?

The GST Portal permits the following documents as proof of bank account details:

  • A cancelled cheque

  • The first page of the bank statement

  • The first page of the passbook

The document must clearly display the account holder’s name, account number, IFSC code, and bank name.

Common FAQs for Taxpayers and Professionals

1️⃣ Can a savings account be used?

Yes. Proprietors may use a savings account, although opening a current account is preferable for business transactions.

2️⃣ Is a joint bank account allowed?

No. The bank account must be solely in the name of the person or entity holding the GST registration.

3️⃣ What if the bank account has not been opened yet?

Open the account and update the information at the earliest. Delays may result in registration suspension.

4️⃣ Can a taxpayer begin business without updating bank details?

No. GSTR-1 filing is blocked until bank account details are added.

5️⃣ What if incorrect bank details were submitted?

You must revise the information through a Non-Core Amendment. Incorrect details can also trigger suspension.

The GSTN advisory issued on 20 November 2025 clearly indicates that providing bank account information under Rule 10A is no longer optional—it is a mandatory compliance requirement directly tied to maintaining an active GST registration.

Taxpayers and practitioners should ensure the details are updated promptly to avoid disruptions.

Revised ITR forms will be released by January 2026.

The Income Tax Department has announced that the new Income Tax Return (ITR) forms and rules will be notified by January 2026 for Financial Year 2025–26 (Assessment Year 2026–27).

CBDT Chairman Ravi Aggarwal has confirmed that these new forms will be simpler, more user-friendly, and easier to file, ensuring that taxpayers and the tax ecosystem get sufficient time to adjust to the updated system.

This advance announcement is a major compliance reform aimed at reducing last-minute rush, errors, and extensions during the filing season.

Why Are the New ITR Forms Being Released Early? (Key Reason)

The Income Tax Department has chosen to issue the upcoming ITR forms much earlier than before for a very specific reason.

Previously, the forms were released late, which led to several recurring problems:

  • Taxpayers didn’t get enough time to understand the updated forms

  • Tax professionals faced excessive workload and frequent delays

  • Software providers struggled to update their systems on time

  • AIS/TIS mismatches surfaced too late in the filing cycle

  • Filing deadlines had to be extended multiple times

  • Late notifications also slowed down return processing and refund issuance

To prevent these year-after-year disruptions, the Government now aims to achieve:

✔ Timely release of forms
✔ Early readiness of the software ecosystem
✔ A smoother filing season
✔ Reduced pressure on taxpayers and professionals
✔ No requirement for deadline extensions

This is the core reason why the new ITR forms are being scheduled for early notification—by January 2026.

What Will Be New in the Upcoming ITR Forms? (Likely Features)

While the final versions of the new ITR forms are still awaited, government updates and recent policy changes indicate that several enhancements are on the way.

1. Simpler and More Compact Formats

  • Considerably reduced manual data entry

  • Fewer supporting documents or annexures

  • Better-organized and clearly defined schedules

  • Instructions written in easy, plain language

2. Enhanced Prefilled Information

The new system is expected to pull data automatically from multiple sources, including:

  • AIS

  • TIS

  • Form 26AS

  • GST data for businesses

  • Capital gains statements from brokers

This expanded prefilled data will minimize mistakes and speed up return filing.

3. Smart, Category-Based ITR Structure

The government may introduce separate streamlined forms designed specifically for:

  • Salaried individuals

  • Small businesses

  • Professionals

  • Senior citizens

  • Taxpayers with capital gains

  • Companies, LLPs, trusts, and other complex entities

4. Better Technology and Automated Error Checks

  • Instant alerts for mismatches

  • Automatic validation before filing

  • Elimination of duplicate entries

  • More seamless coordination with e-verification and refund systems

The decision to notify the new ITR forms by January 2026 represents a major reform in India’s tax administration. The objective is straightforward:
simple forms + early release + a smoother filing season.

With this early announcement, taxpayers, accountants, and software providers get ample time to prepare before the new forms become mandatory from 1 April 2026. This is expected to reduce errors, minimize mismatches, and create a much better filing experience overall.

Why TDS Is Charged on Cash Withdrawals by Banks – Key Rules Explained

The purpose of introducing Section 194N is to curb heavy cash usage and support the shift toward a digital and transparent economy. According to this section, TDS is deducted on cash withdrawals from banks, co-operative banks, or post offices once the total amount goes beyond the set yearly limit. It covers a wide range of taxpayers—individuals, HUFs, businesses, companies, and trusts—so knowing how it works is crucial for compliance.

Where Section 194N Applies
Section 194N is triggered when cash is taken out from a scheduled bank, a co-operative bank, or a post office. TDS is deducted once the total cash withdrawn during the financial year exceeds the allowed limit.

Cash can be withdrawn through:

  • Self cheques

  • Bearer cheques

  • ATM withdrawals

  • Cash taken directly from the bank counter

Online transfers and digital payments are excluded from TDS.

TDS Rates and Limits
The applicable TDS rate depends on whether the taxpayer has filed income tax returns for the past three assessment years.

A. When the individual has filed Income Tax Returns for any of the previous three years

  • No TDS is applied until total cash withdrawals reach ₹1 crore in a financial year.

  • Once this limit is crossed, TDS is charged at 2% on the amount exceeding ₹1 crore.

Example:
If the total cash withdrawn is ₹1.30 crore, TDS @ 2% will apply on ₹30 lakh.

B. When the individual has not filed ITRs for all of the last three years

  • A 2% TDS rate applies on withdrawals above ₹20 lakh up to ₹1 crore.

  • A 5% TDS rate applies on any withdrawal amount beyond ₹1 crore.

Example:
Total withdrawal = ₹1.50 crore

  • 2% on ₹80 lakh (from ₹20 lakh up to ₹1 crore)

  • 5% on ₹50 lakh (amount beyond ₹1 crore)

Entities Exempt From Section 194N

TDS is not deducted on cash withdrawals made by:

  • Central and State Government bodies

  • Banks, co-operative banks, and post offices

  • Business correspondents operating for banks

  • White label ATM operators

  • Any person or class of persons specifically notified by the government

  • Certain commission agents/traders who withdraw cash on behalf of farmers

These exemptions are designed to keep essential services and banking operations running smoothly.

How Section 194N Works in Practice

How banks calculate TDS

  • Banks total all cash withdrawals across every account held by the user.

  • TDS is triggered immediately once the withdrawal crosses the applicable threshold.

  • PAN data is used to determine whether the person is an ITR filer or a non-filer.

  • Banks may request confirmation of ITR filing status to apply the correct rates.

  • The deducted TDS is reflected in Form 26AS or AIS and can be claimed in the income tax return.

Key Examples

Example 1: ITR Filer

Mr. A (who has filed ITRs) makes the following withdrawals:

  • ₹40 lakh

  • ₹35 lakh

  • ₹30 lakh
    Total = ₹1.05 crore
    TDS = 2% on ₹5 lakh = ₹10,000

Example 2: ITR Non-Filer

Ms. B (no ITR filed for 3 years) withdraws ₹55 lakh.
TDS = 2% on (₹55 lakh – ₹20 lakh) = ₹7,00,000

If she withdraws ₹1.40 crore:

  • 2% on ₹80 lakh

  • 5% on ₹40 lakh

Important Compliance Tips for Professionals

  • Make sure clients have filed their ITRs to avoid higher TDS rates.

  • Advise cash-heavy businesses to plan their yearly cash withdrawals carefully.

  • Track withdrawals from every account held in the same bank.

  • Review Section 194N entries in Form 26AS/AIS regularly.

  • Maintain proper records for audit purposes, especially for large cash withdrawals.

  • Remind clients that TDS is not an additional tax—it can be adjusted or refunded in the ITR.

Frequent Errors to Watch Out For

  • Thinking each account has a separate ₹1 crore limit—limits apply per bank, not per account.

  • Assuming TDS is charged only at the end of the year—it applies as soon as the limit is crossed.

  • Misunderstanding the difference between filer and non-filer status.

  • Failing to monitor withdrawals from all branches of the same bank.

  • Believing TDS is a permanent loss—it is actually claimable

 

 

Taxation of GTA Services under GST and Application of RCM

Definition of a GTA

A Goods Transport Agency is defined as a person providing road transport services for goods and issuing a consignment note.
If a transporter does not issue a consignment note, they are not considered a GTA, and their services are not liable to GST.
Thus, independent truck or tempo owners who do not provide consignment notes are typically not classified as GTA.

GST Taxability Framework for GTA Services (Revised up to 22.09.2025)

Tax Structure

Category GST Rate ITC Availability Person Liable to Pay Tax
RCM (Reverse Charge Mechanism) 5% ITC available to the recipient Recipient of service
FCM (Forward Charge Mechanism) 18%* Full ITC allowed GTA
FCM – Optional Concessional Rate 5% No ITC for the GTA GTA

*Prior to 22.09.2025, the applicable rate was 12% with ITC.

Key Points

A GTA must choose the Forward Charge option (18%) every year by submitting Annexure V on the GST portal.
If the GTA wishes to discontinue the option, Annexure VI must be filed; otherwise, the GTA will continue under the default RCM structure (5%).
Once selected, the option remains valid for the entire financial year.

GTA must also include a declaration on invoices when opting for Forward Charge.

Mandatory Invoice Declaration (for Forward Charge)

When a GTA chooses to pay GST under Forward Charge, they must include the declaration as specified in Annexure III of Notification 13/2017, inserted through Notification 5/2022–Central Tax (Rate) dated 13-07-2022 (effective from 18-07-2022).

Declaration:
“I/We have obtained registration under the CGST Act, 2017 and have opted to pay GST on GTA services for transportation of goods under Forward Charge from the Financial Year ______. We have not switched back to the Reverse Charge Mechanism.”

Liability to Pay GST under RCM

GST under the Reverse Charge Mechanism (RCM) becomes payable when the freight charges are borne by any of the following types of recipients:

  • A factory

  • A society

  • A cooperative society

  • A body corporate

  • A GST-registered person

  • A partnership firm or an Association of Persons (AOP)

  • A casual taxable person

If the freight is paid by an unregistered customer, the GTA will need to charge 18% GST under Forward Charge (only if the GTA has opted for FCM).
If the GTA has not opted for Forward Charge, the service continues to be exempt for unregistered recipients as per GTA provisions.

Situations Where RCM Does Not Apply

The Reverse Charge Mechanism (RCM) is not applicable to GTA services when goods are transported by road in a goods carriage to the following entities:

(a) Any department or establishment of the Central Government, State Government, or Union Territory;
(b) Any local authority;
(c) Any governmental agency,

provided that such entities are registered under the CGST Act solely for the purpose of TDS compliance under Section 51, and not for carrying out taxable supplies of goods or services.

Important Note

These services are exempt from GST under Entry 21B of Notification 12/2017, meaning no GST liability arises in such cases.

GTA Service Exemptions

The following categories of transportation services provided by a Goods Transport Agency remain exempt from GST:

  • Transport of agricultural produce

  • Milk, food grains, and salt

  • Organic manure

  • Newspapers

  • Relief or disaster-related materials

  • Defence-related goods transported for the Government

  • GTA services provided to an unregistered individual, including an unregistered casual taxable person

Place of Supply Rules for GTA Services

  • If the recipient is registered: The place of supply is the location of the recipient.

  • If the recipient is unregistered: The place of supply is the location where the goods are handed over to the GTA for transportation.

✅ Your Complete Guide to Filing the GSTR-9 Annual GST Return for FY 2024-25

GSTR-9 is one of the most crucial annual filings under the Goods and Services Tax (GST) framework. It presents a consolidated summary of a taxpayer’s outward supplies, inward supplies, input tax credit (ITC), taxes paid, and all reconciliations carried out throughout the year. For FY 2024-25, the GST portal has introduced several new validations, reporting updates, and system checks—making accuracy more important than ever for businesses and tax professionals.

This guide covers everything you need to know about GSTR-9, including its purpose, eligibility, due dates, detailed table-wise instructions, new FY 2024-25 changes, common errors, essential checklists, and expert recommendations for smooth and compliant filing.

1. What is GSTR-9?

GSTR-9 is the annual GST return that compiles:

  • The outward supply data reported in GSTR-1

  • Tax liability and ITC information furnished through GSTR-3B

  • Auto-populated details from GSTR-2B

  • Figures drawn from the taxpayer’s books of accounts

This annual summary acts as a comprehensive reconciliation statement and is a critical document during departmental audits, scrutiny reviews, and assessment proceedings.

2. Who Is Required to File GSTR-9?

The following categories of registered persons must file GSTR-9 for FY 2024-25:

  • Regular GST taxpayers

  • SEZ units and developers

  • Businesses with an annual turnover above ₹2 crore

Exempt from filing GSTR-9:

  • Composition taxpayers (who file GSTR-4 instead)

  • Input Service Distributors (ISD)

  • Non-resident taxable persons

  • Casual taxable persons

3. GSTR-9 Due Date for FY 2024-25

The deadline for submitting GSTR-9 for FY 2024-25 is 31st December 2025, unless extended by the government.

Delays can result in substantial late fees under Section 47 of the CGST Act—especially for businesses with higher turnover—making early reconciliation and preparation essential.

4. Key Updates in GSTR-9 for FY 2024-25

For FY 2024-25, the Government has introduced multiple new reporting sections and revised the structure of existing tables in GSTR-9. These updates are designed to strengthen reconciliation across books, GSTR-1, GSTR-3B, and GSTR-2B. They also help capture cross-year ITC movements more accurately and reduce mismatch-based notices.

1. New Table 6A1 – ITC of Earlier Year Claimed in FY 2024-25

Earlier, all ITC availed during the year was clubbed under a single Table 6A.
Now, a separate Table 6A1 has been introduced to disclose:

  • ITC relating to FY 2023-24

  • Claimed during FY 2024-25

  • Except ITC reclaimed under Rule 37 / 37A

This helps distinguish between current-year ITC vs. past-year ITC, improving audit accuracy.

2. Table 6A Split into 6A1 & 6A2

The earlier consolidated Table 6A now has:

  • 6A1: ITC pertaining to previous year but claimed now

  • 6A2: ITC relating exclusively to FY 2024-25

This split ensures clearer classification and reduces reconciliation errors.

3. Table 8A Revised – Displays Only FY-Specific Data

Table 8A will now show only those invoices that belong to FY 2024-25, even if the supplier reports them late (April–Oct 2025).

This helps avoid:

  • Unwanted mismatches

  • Wrong ITC eligibility assumptions

  • Errors during audit or scrutiny

4. New Table 8H1 – Import ITC Claimed in the Next FY

A new table 8H1 has been added to capture:

  • ITC on imports related to FY 2024-25

  • But claimed in FY 2025-26

This ensures accurate matching with ICEGATE and prevents excess ITC claims.

5. Table 9 Enhanced – Auto-Detects Tax Gaps

Table 9 has been redesigned with:

  • A new field for Total Tax Paid

  • A comparison field showing the difference between tax payable and paid

Any shortfall is flagged as pending liability, which may require payment via DRC-03.

6. Additional Breakups Added in Table 7 – ITC Reversals

Table 7 now separately shows reversals under:

  • Rule 37 (non-payment to supplier)

  • Rule 37A (mismatch-based reversals)

  • Rule 42 & 43 (proportionate & capital goods ITC)

  • Blocked ITC u/s 17(5)

Earlier, these were clubbed together; now they’re clearly segregated.

7. Updated Validations in Tables 10 & 11 – Amendments

Tables 10 & 11 still capture amendments relating to FY 2024-25 reported later, but with stronger validations:

  • Only correct-year amendments allowed

  • Wrong-year reporting will trigger errors or notices

8. Tables 12 & 13 – Tighter Cross-Year ITC Tracking

  • Table 12: ITC of FY 2024-25 reversed in FY 2025-26

  • Table 13: ITC relating to FY 2024-25 claimed in FY 2025-26

This ensures complete traceability of ITC movements across financial years.

9. New Excel Download – HSN-Wise Outward Supply Summary

A downloadable file for HSN-wise details of outward supplies is now available to simplify reporting and reduce manual errors.

✅ CBDT Introduces New Measures to Speed Up Tax Refunds and Simplify ITR Rectifications

The Central Board of Direct Taxes (CBDT) issued a notification on 27 October 2025, granting the Commissioner of Income Tax at the Centralised Processing Centre (CPC), Bengaluru, concurrent jurisdiction under Section 154 of the Income-tax Act, 1961.

This empowers the CPC to correct apparent errors in orders issued through the AO–CPC digital interface, significantly speeding up the resolution of mistakes related to tax credits, refunds, and interest calculations.

According to the notification, CPC can now rectify issues such as:

  • Non-consideration of prepaid tax credits (TDS/TCS/advance tax)

  • Errors in granting reliefs

  • Wrong computation of interest under Section 244A

  • Any tax/refund computation mistakes linked to AO-CPC processed cases

Where required, CPC may also issue demand notices under Section 156.

How This Change Benefits Taxpayers

Chartered Accountant (Dr.) Suresh Surana outlines the major advantages:

1. Much Faster Rectification of Errors

Previously, taxpayers had to wait for jurisdictional Assessing Officers to manually correct mismatches in TDS/TCS, advance tax, or refund computations—often causing long delays.

Now, CPC can directly fix such issues, resulting in quicker resolutions.

2. Reduced Administrative Delays

This move centralises Section 154 rectifications for AO-CPC cases, making the system more automated and less dependent on manual inter-departmental coordination.
This improves processing speed and reduces duplicated effort between AOs and CPC.

3. Timely and Accurate Refunds

Refund delays often stem from small computational errors or incorrect interest calculations.
With the CPC now authorised to correct these instantly, taxpayers can expect:

  • Faster release of refunds

  • Correct Section 244A interest

  • Fewer follow-ups and representations

4. Greater Transparency & Improved Compliance

Since rectifications will now run through CPC’s system-driven interface, taxpayers benefit from:

  • Better audit trails

  • Accurate reflection of all prepaid tax credits

  • Reduced scope for human error

  • Clearer communication and automated updates

Expert Insight

“This notification bridges the functional gap between assessment and processing, ensuring that genuine computational errors are corrected swiftly without requiring taxpayers to approach multiple authorities. It strengthens the government’s push for faceless, technology-driven, and taxpayer-friendly tax administration.”
— CA (Dr.) Suresh Surana

What CBDT Stated in the Notification

CBDT has directed that the Commissioner of Income Tax, CPC Bengaluru, shall exercise concurrent powers to:

1. Rectify Mistakes (Section 154)

Including issues related to:

  • Previously issued refunds

  • Omitted prepaid tax credits

  • Missed reliefs

  • Wrong 244A interest

  • Any computational errors affecting tax, refund, or demand

2. Issue Demand Notices (Section 156)

For cases where rectification results in tax payable.

3. Delegate Powers

The Commissioner may authorise:

  • Additional / Joint Commissioners to execute rectification functions

  • These officers may further authorise Assessing Officers for specific classes of cases or taxpayers

This ensures a structured, tiered flow of responsibility, enhancing accountability and efficiency.

Notification Reference

Notification No. 155/2025
F. No. CB/362/2025-O/o Addl. DIT 6 CPC Bengaluru-187/10/2024-ITA-I
(Effective immediately on publication in the Official Gazette)

Taxpayers to Benefit as CBDT Enables CPC Bengaluru to Accelerate Rectification & Refund Processing

Bengaluru — In a significant move aimed at improving the efficiency and accuracy of income-tax processing, the Central Board of Direct Taxes (CBDT) has empowered the Commissioner of Income Tax at the Centralised Processing Centre (CPC), Bengaluru, with enhanced authority to handle rectifications and issue demand notices under the Income-Tax Act.

Under this new directive, the CPC Bengaluru has been granted concurrent jurisdiction under Sections 120(1) and 120(2) of the Income-Tax Act, 1961. This will enable faster resolution of taxpayer issues such as incorrect tax computations, refund mismatches, or other technical errors.

According to a notification released by the Ministry of Finance, the Commissioner of Income-Tax at CPC Bengaluru can now:

  • Issue demand notices under Section 156

  • Rectify errors apparent on record under Section 154

These powers include correcting issues such as:

  • Wrongly computed refunds

  • Omission of prepaid taxes like TDS, TCS, or advance tax

  • Errors in considering relief under tax treaties

  • Mistakes in calculating interest under Section 244A

Delegation for Faster Processing

The notification also allows the Commissioner to authorise Additional or Joint Commissioners in writing, who may then assign specific rectification or follow-up functions to Assessing Officers.
This layered delegation is designed to:

  • Improve accountability

  • Speed up the workflow

  • Ensure timely resolution of taxpayer requests

By empowering CPC-Bengaluru to take up rectification tasks directly—earlier handled jointly by CPC and field officers—the government aims to strengthen its digital tax-administration framework and enhance taxpayer convenience.

The notification takes effect immediately upon publication in the Official Gazette.

Recent Extensions in Tax Deadlines

Earlier, CBDT had extended several key deadlines:

  • Return filing under Section 139(1) for applicable taxpayers moved from 31 October to 10 December 2025.

  • For assessees requiring an audit under clause (a) of Explanation 2 to Section 139(1):

    • Audit report due date was first extended from 30 September 2025 to 31 October 2025.

    • This “specified date” has now been further extended to 10 November 2025.

A formal notification for the latest extension will be issued separately.

Important EPF Changes Effective November 2025: What Employees Should Know

On October 15, 2025, the Ministry of Labour and Employment released an official statement via the Employees’ Provident Fund Organisation (EPFO), outlining the latest reforms to the Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS).
These updates, approved by the Central Board of Trustees (CBT), are designed to streamline withdrawal procedures, expand digital accessibility, and speed up claim processing, while continuing to protect employees’ retirement funds.
The announcement also aimed to clarify misconceptions spreading on social media and to inform both employers and employees about the real implications of these policy changes.

🔹 Major Highlights from the EPFO Press Release

a) Streamlined EPF Withdrawal System
Previously, EPF members had to follow separate rules for different partial withdrawal purposes such as marriage, medical needs, education, or home purchase.
The new unified withdrawal framework brings all these under one simplified set of rules. It now:

  • Permits withdrawals from both employee and employer contributions (including interest).

  • Reduces the minimum service period to just 12 months, compared to 5–7 years earlier.

  • Introduces uniform eligibility criteria across all withdrawal categories.

This integrated model eliminates the confusion caused by multiple provisions and makes the withdrawal process easier to understand and apply.

b) Access to Employer’s Contribution Made Easier
A major policy update now allows members to withdraw from the employer’s share as well, under certain approved conditions.
Eligible individuals can withdraw up to 75% of their total accumulated balance for needs such as housing, medical treatment, or during periods of unemployment.

This change provides greater financial flexibility for employees, especially in emergency situations, while still keeping a portion of funds reserved for post-retirement security.

c) Safeguards to Protect Retirement Corpus
Even with relaxed withdrawal norms, EPFO has introduced safeguards to preserve long-term savings.
Under the Employees’ Pension Scheme (EPS), the waiting period for final settlement has been increased from 2 months to 36 months after an employee leaves service.

This aims to discourage premature full withdrawals and promote a more sustainable retirement corpus.

d) Faster Claims & Digital-First Processing
EPFO’s new reforms also prioritize efficiency and technology adoption. Key enhancements include:

  • Increasing the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh.

  • Streamlining claim verification with fewer documents.

  • Enabling UAN and Aadhaar-based digital processing for most claims and transfers.

  • Reducing reliance on employer verification, allowing direct claim handling via the EPFO portal.

Together, these initiatives aim to make EPF services faster, more transparent, and user-friendly.

e) Clarification on Social Media Rumors
The October 2025 EPFO press release also addressed misinformation circulating online about complete EPF withdrawals.
It clarified that:

  • There is no general permission for full withdrawal of EPF while still employed.

  • 100% withdrawal is only allowed upon retirement or under specific eligible cases.

  • Members should only rely on official EPFO and Ministry notifications for authentic updates.

This clarification was issued to prevent confusion and ensure members understand the genuine scope of the new rules.

🔹  Practical Guidance & Implementation Checklist

For Employees / EPF Members

  • Ensure that you have completed a minimum of 12 months of continuous employment before submitting a withdrawal request.

  • Under the revised framework, both the employee and employer shares of the fund can be withdrawn, provided the conditions are met.

  • Retain a sufficient balance in your EPF account to continue earning interest and to strengthen your long-term savings.

  • Members covered under EPS-95 should note that final pension withdrawal can only be initiated after 36 months from the date of leaving service.

  • Use your UAN-linked Aadhaar credentials for faster and smoother online claim submission and tracking.

For Employers / Establishments

  • Make sure that ECR filings and monthly contributions are submitted promptly to avoid delays in employee claim processing.

  • Communicate with employees about the revised withdrawal norms and associated limitations.

  • Keep all employee details updated and verified on the EPFO portal, including KYC, Aadhaar, PAN, and bank information.

  • Since employer contributions are now partially withdrawable, reconcile monthly contributions carefully to ensure accuracy in employee balances.

 

November 2025 Compliance Calendar: All GST, Income Tax & MCA Due Dates Explained

November 2025 brings a packed compliance schedule for businesses and professionals alike.
This month combines several overlapping deadlines — from GST returns and Income Tax audits to annual filings under the MCA.
To ease the pressure on taxpayers and corporates, authorities have granted notable extensions and relaxations, particularly concerning audit-related filings and MCA compliances.

🔹 1. MCA / ROC Compliances (As per Latest Relaxation)

✅ Revised Filing Deadlines
The Ministry of Corporate Affairs (MCA) has granted an extension for submitting AOC-4, AOC-4 XBRL, AOC-4 CFS, AOC-4 NBFC (Ind AS), and MGT-7 / MGT-7A forms for FY 2024–25.
Companies can now file these forms till 31 December 2025 without incurring any additional filing fees.
This move is intended to facilitate a smoother transition to the new MCA V3 e-form system and reduce last-minute filing congestion on the portal.

⚠️ Note:
This relaxation applies only to filing fees and does not extend the AGM due date. All companies must have conducted their AGM within the prescribed period (typically by 30 September 2025). The waiver covers late fees only, not the delay in AGM itself.

📋 Professional To-Do List

  • Submit all AOC and MGT forms by 31 December 2025 to utilize the relaxation.

  • Make sure AGM minutes, board resolutions, and financial statements are properly finalized and signed before uploading.

  • If the AGM was not held on time, guide your client to apply for condonation or file compounding as per law.

🔹2. Income Tax Due Date Extension — CBDT Circular No. 15/2025

The Central Board of Direct Taxes (CBDT) has provided much-needed relief to taxpayers by extending key Income Tax compliance deadlines for the Assessment Year 2025–26.
This move comes after several professional associations and High Court interventions highlighted difficulties caused by portal issues and increased audit-reporting requirements.

✅ Revised Deadlines

Filing / Report Earlier Due Date Extended Due Date
Tax Audit Report (Form 3CA/3CB–3CD) 31 October 2025 10 November 2025
Income Tax Return (Audit Cases) 30 November 2025 10 December 2025

The CBDT has clarified that these extensions are intended to ease compliance pressure on businesses and professionals during the busy audit season.

⚙️ Key Action Points for Practitioners

  • Complete and upload Tax Audit Reports by 10 November 2025.

  • File Income Tax Returns for audit cases by 10 December 2025.

  • For Transfer Pricing cases, align Form 3CEB filing with the extended ITR deadline (expected 10 December 2025).

  • Reconcile all figures in AIS / TIS / Form 26AS before submission to avoid mismatch or notice generation.

These extensions give professionals some breathing room — but it’s crucial to plan filings early to avoid last-minute portal congestion.

🔹3.GST Compliance Deadlines for November 2025 (Covering October Transactions)

Th.e GST compliance calendar for November 2025 follows the regular filing cycle, covering returns related to October 2025. Businesses must ensure timely submission to avoid late fees and interest.

Form Purpose Due Date
GSTR-7 TDS under GST 10 November 2025
GSTR-8 TCS by E-commerce Operators 10 November 2025
GSTR-1 Details of Outward Supplies (Monthly Filers) 11 November 2025
GSTR-5 / GSTR-6 NRTP / ISD Returns 13 November 2025
GSTR-3B Monthly Summary Return & Tax Payment 20 November 2025
PMT-06 Monthly Payment for QRMP Taxpayers 25 November 2025

📋 Action Points for Professionals

  • Review and reconcile October invoices before filing GSTR-1.

  • Match Input Tax Credit (ITC) from GSTR-2B prior to submitting GSTR-3B.

  • Ensure QRMP taxpayers complete their PMT-06 payments by 25 November 2025.

  • Begin early reconciliation for FY 2024–25 annual filings — GSTR-9 and GSTR-9C are due by 31 December 2025.