Indirect Tax

Customs

Introduction of Postal Imports Regulations, 2025 for Seamless Customs Clearance

Notification No. 18/2025-Customs (N.T) dated 28 March 2025

The Central Board of Indirect Taxes and Customs (CBIC) has introduced the Postal Imports Regulations, 2025 to streamline the clearance of goods via Foreign Post Offices under the Customs Act, 1962. Certain goods are prohibited from postal imports, including live animals, perishables, gold, silver, and items requiring sample testing.

Key highlights of the regulations include:

  • Key highlights of the regulations include:
  • Introduction of risk-based assessment protocols;
  • Detailed procedures for the clearance of goods;
  • Strict conditions for clearance, penalties for noncompliance, and provisions for the re-export or disposal of undelivered goods.

The effective date for implementation will be announced separately by CBIC.

Government imposes Anti-Dumping Duty on various imports

Notification No.01/2025-Customs (ADD) dated 7 March 2025

Notification No.02/2025-Customs (ADD) dated 17 March 2025

Notification No.03/2025-Customs (ADD) dated 17 March 2025

Notification No.04/2025-Customs (ADD) dated 18 March 2025

Notification No.05/2025-Customs (ADD) dated 21 March 2025

Notification No.06/2025-Customs (ADD) dated 24 March 2025

Notification No.07/2025-Customs (ADD) dated 25 March 2025

The Ministry of Finance has announced levy of anti-dumping duties at varied rates on import of Trichloro Isocyanuric Acid, Aluminium Foil (up to 80 microns), Vacuum Flasks, Soft Ferrite Cores, Poly Vinyl Chloride (PVC) Paste Resin, Roller Chains, and Acrylic Solid Surfaces to curb unfair trade practices and protect domestic industries. The imposition primarily targets imports from China PR but also extend to Japan, Korea RP, Malaysia, Norway, Taiwan, and Thailand.

CBIC issues new guidelines for Import-Export via Personal Carriage

Circular No. 09/2025-Customs dated 28 March 2025

The CBIC introduced standardized procedures to regulate the import and export of goods through personal carriage, with a special focus on gems, jewelry, and prototypes.

Under the new guidelines, foreign-bound passengers are permitted to carry gems and jewelry as personal cargo from designated airports. Additionally, the rules allow for re-import of duty-free rejected jewelry under specific conditions, simplifying the process for travelers and businesses.

Key features of the new procedure include:

  • Electronic Filing: Mandatory submission of Bills of Entry and Shipping Bills through electronic platforms to enhance efficiency.
  • Operational Guidelines: Jurisdictional commissioners will issue detailed operational guidelines to ensure smooth implementation and oversee compliance.
  • Infrastructure Development: Emphasis on strengthening airport infrastructure to support the new procedures effectively.

Foreign Trade Policy

Annual RoDTEP Return deadline extended to 30 June 2025

Public Notice No. 51/2024-25 dated 19 March 2025

The Directorate General of Foreign Trade (DGFT) has extended the last date for filing the Annual RoDTEP Return (ARR) for FY 2023-24, applicable to all exports. Previously set for 31 March 2025, the new deadline is now 30 June 2025. The applicable grace period is also pushed from 30 June 2025 to 30 September 2025.

Direct Tax

Clarification on Application of Principal Purpose Test Under India's Double Taxation Avoidance Agreement

Press release dated 15 March 2025

  1. CBDT further provides below clarification on Circular No. 1/2025, dated 21 January 2025 which was issued in the form of a guidance to provide clarity and certainty on the application of the Principal Purpose Test (PPT) provision.
    1. The said Circular shall apply to the PPT provision in only those Indian DTAAs wherein such a provision exists.
    2. The Circular is not intended to interfere or interact with any other provision of the Indian DTAAs and with anti-abuse rules under the domestic law such as General Anti-Abuse Rule (GAAR) and Specific Anti- Abuse Rules (SAAR).
    3. The Circular applies only to the PPT without affecting other provisions of the Income-tax Act.

Expand the Scope of Safe Harbour Rules

NOTIFICATION NO. G.S.R. 193(E) [NO. 21/2025/F.NO. 370142/6/2025-TPL] And PRESS RELEASE, DATED 25 March 2025

  • Central Board of Direct Tax has expanded the scope of Safe Harbour rule by:
    1. Increasing the threshold for availing safe harbour from INR 2 billion to INR 3 billion.
    2. Including the "lithium ion batteries for use in electric or hybrid electric vehicles" in the definition of core auto components.
  • The above scope expansion is made by amending clause (b) of Rule 10TA and sub rule (2A) in Rule 10TD respectively and shall be applicable to two assessment years 2025-26 and 2026-27.

    • Amendment In Form Nos. 26Q And 27Q

    NOTIFICATION G.S.R. 195(E) [NO. 22/2025/F.NO. 370142/08/2025-TPL], DATED 27 March 2025

    1. CBDT has amended Form 26Q and Form 27Q by inserting section 194T for reporting TDS deducted on payment of salary, remuneration, commission, bonus or interest to a partner of firm.

Waiver of interest levy under Section 201(1A) (ii) or 206C (7) in specific cases

CIRCULAR NO. 5/2025 [F.NO. 275/92/2024-IT (BUDGET)], DATED 28 March 2025

  1. In response to representations from taxpayers facing technical issues while making TDS and TCS payments, CBDT has issued a directive. If taxpayer initiates payment and the amounts is debited from its bank accounts on or before the due date but face delays in the actual crediting to the government due to technical glitches, the Chief Commissioner of Income Tax (CCIT), Director General of Income Tax (DGIT), or Principal CCIT (PrCCIT) can reduce or waive the interest charges under sections 201(1A)(ii) and 206C(7) of the ITA.
  2. Applications for interest waiver must be made within one year from the end of the financial year for which interest is charged and the same shall be resolved within six months.

Amendment In Form No. 3CD

NOTIFICATION G.S.R. 207(E) [NO. 23/2025/F. NO. 370142/10/2025-TPL], DATED 28 March 2025

  1. CBDT has made the following rules further to amend the Income-tax Rules, 1962 to improve financial transparency and tax compliance.
    1. Insertion of Section 44BBC in clause 12, where the Auditor needs to report profits and gains assessable from business of operation of cruise ships in case of non-residents.
    2. In clause 19, deductions under Sections 32AC, 32AD, 35AC, and 35CCB have been removed
    3. In clause 21, a row with the words "Expenditure incurred to settle proceedings initiated in relation to contravention under such law as notified by the Central Government in the Official Gazette in this behalf” shall be inserted.
    4. The amendments also introduce detailed classifications for loans, deposits, and repayments, incorporating a dropdown code system.
    5. Additionally, businesses must now report interest inadmissible under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.
Tax Street March 2025