India Business Bulletin (August 2025)

General Updates

New bills passed by Parliament to modernize legal framework of Maritime Laws

The Parliament has passed two significant maritime legislations i.e., the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2024 (collectively referred to as "Bills"). The said Bills align with several International Maritime conventions; reduces compliance burdens to improve ease of doing business; enhances safety in navigation and life at sea; safeguards the marine environment; strengthens emergency preparedness and salvage operations; boosts tonnage under the Indian flag; and protects India's coastline and maritime interests. Through these Bills India strengthens its navigation safety, lifeat-sea protections, and emergency response mechanisms.

The Income Tax Bill, 2025 ("Tax Bill") passed by Parliament of India

The Tax Bill will replace old Income Tax Act, 1961 and will come into effect from 1 April 2026. Some of the highlights are revised powers of income tax officials during search and seizure operations; reduction in number of sections and chapters; provision for claiming Tax Deducted at Source refunds even after missing the Income Tax Return deadline without penalty; concept of "Tax Year"; mandatory notices before enforcement actions; inclusion of virtual digital assets in undisclosed income provisions; new Taxpayer Charter amongst others.

The Mines and Minerals (Development and Regulation) Amendment Bill, 2025 ("Mines and Minerals Bill") passed

The Parliament of India has passed Mines and Minerals Bill which will replace the Mines and Minerals (Development and Regulation) Act, 1957. Key highlights of Mines and Minerals Bill include establishment of National Mineral Exploration Trust; power of State Government to add other minerals to an existing lease; removal of limit on sale of minerals; captive mines are allowed to sell up to 50 percent of minerals produced in a year.

The Promotion and Regulation of Online Gaming Bill, 2025 ("Gaming Bill 2025") passed

The Gaming Bill 2025 prohibits offering, operation, facilitation, advertisement, promotion and participation in online money games such as online betting, gambling and lotteries; card games with money stakes and fantasy sports offering cash rewards. Highlights of the Gaming Bill 2025 include applicability to online money gaming service offered within India or operated from outside India; establishment of Online Gaming Authority; provisions related to monetary penalties and imprisonment; power of Central Government to investigate, search and seize both digital and physical property linked to offences.

Reduction in number of Goods and Services Tax ("GST") slabs

The Central Government has reduced the number of GST slabs to 2 (two) i.e. 5% & 18% as opposed to previous 4 (four) slabs. Additionally, a new 40% special rate has been introduced for sin & super luxury goods. The new slabs/rates will come into force from 22 September 2025.

Notification enlisting "Ayurveda Aahara" products released

The Food Safety and Standards Authority of India, in consultation with the Ministry of Ayush, has released a list, of Ayurveda Aahara products – which refers to food prepared in accordance with the recipes / ingredients / processes as outlined in the authoritative books of Ayurveda. The notification aims at recognising Ayurveda-centric foods, and keeping the public informed of the authentic recipes / ingredients / processes in Ayurveda texts.

PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme extended

The Minister of Heavy Industries has extended the PM E-Drive Scheme for 2 years till 31 March 2028. The objective of this Scheme is to accelerate adoption of electric vehicles ("EV"), establish robust charging infrastructure, and strengthen the EV manufacturing ecosystem.

Corporate Law Update

The Companies (Indian Accounting Standards) Second Amendment Rules, 2025

The Ministry of Corporate Affairs issued a notification to amend the Companies (Indian Accounting Standards) Rules, 2015 by making the Companies (Indian Accounting Standards) Second Amendment Rules, 2025 which are effective from 13 August 2025. These rules amend various provisions of Indian Accounting Standards, providing greater clarity, alignment with international practices and introduces new disclosure requirements.

Labour Law Updates

Notice to Manager is constructive notice to employer

The High Court of Kerala held that the 'employer' was properly represented in the proceedings before the Controlling Authority with the service of notice to the Manager under the Payment of Gratuity Act, 1972 and upheld the order passed in favour of Respondent/ worker. Once the Manager i.e. person in control of the affairs of factory, is made a party in proceedings, the death of the owner or occupier has no consequence and there is no need to implead the legal representatives of the owner.

Labour Laws amended in Delhi

The Government of Delhi has notified amendment to its labour laws which will be applicable on all shops and commercial establishments except liquor shops. Key considerations of amendment include 9 working hours in a day and not more than 48 hours in a week; arrangements regarding safety; installation of CCTV cameras; weekly off day on rotation basis; compensatory national holiday and double rate of wages as overtime; written consent from women employee; compliances with POSH Act; payment of wages though cheque/ electronic clearing service.

Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 ("the Act") passed

The Government of Karnataka has notified the Act and key highlights of the same include applicability on (i) aggregator or platform operating/providing any one or more specified service; (ii) Gig worker registered; and (iii) platform; definition of various terminologies such as Gig Worker, Platform, Aggregator etc.; establishment of Karnataka Platform Based Gig Workers Welfare Board; gig Worker's rights (Registration with the Board, Unique ID, Accessibility of general and social security schemes, Grievance Redressal Mechanism); establishment of the Karnataka Gig Worker's Social Security and Welfare Fund; quarterly return submission by aggregator/ platform; mapping of payment to Payment and Welfare Fee Verification System.

Removal of employee justified when he accepted the report of inquiry officer

It has been reiterated by Supreme Court of India that the disciplinary authority is not required to record reason in detail in case report of inquiry officer is accepted by the employee.

Changes in working hours of employees in Mumbai in talk

The Government of Maharashtra is planning to increase the number of daily working hours from present 9 (nine) to 10 (ten) for employees working in private establishments.

One-time switch option available

The Government of India has allowed employees to avail one-time, one-way switch option from Unified Pension Scheme (UPS) to the National Pension System (NPS) – which can be availed 1 (one) year before retirement or 3 (three) months before voluntary retirement.

Claim settlement for minor becomes easier

Employees' Provident Fund Organisation has relaxed the requirement of Guardianship Certificate in cases wherein settlements are being credited to the Bank Accounts of the minor. Further, claimants are advised to open separate bank accounts for minor children for crediting the settlement amounts along with pension due to them.

Intellectual Property Updates

No Right to Pre-Advertisement Opposition in Trademark Applications

The Madras High Court, in a recent decision, held that third parties cannot seek hearings by the Trademark Registry at the preadvertisement stage of a trademark application. The case arose when the Petitioner challenged a trademark application, alleging fabricated user documents submitted by the Applicant and thus filed an interlocutory petition requesting that the Registry halt its procedure. Here the Court clarified that the Trade Marks Act, 1999 allows opposition only after advertisement of the mark. It was further recommended that the Registry mandates petitioners to specify the statutory basis for any interlocutory petition to ensure procedural clarity.

Consideration of Written Argument at the time of hearing is not mandatory, if the pleadings are not complete

Delhi High Court, while deciding an appeal filed before it affirmed Registrar's decision by stating that while submission of Evidence in support of Opposition is not mandatory, however, to intimate the Applicant & Registrar about not adducing the Evidence is mandatory. Keeping this into consideration, the Court opined that the Opponent has failed to comply with the mandatory requirement of either adducing Evidence or intimating about the same to Applicant & Registrar, therefore, filing of the written arguments cannot come as a rescue to the Opponent.

Right to a speedy and expeditious disposal of trademark application – Fundamental Right

The High Court of Rajasthan held that the right to a speedy and expeditious disposal of trademark application is an integral part of the fundamental right (Right to Life) as enshrined under the Constitution of India. Further, general directions have been issued by the Court to the Registrar of Trademarks to decide all pending applications expeditiously.

Case Laws

Unsigned Contract can be referred to arbitration

The Supreme Court of India has ruled that in case where the parties acted upon a contract containing arbitration clause even the unsigned contract can be referred to arbitration. In the present matter Respondent affirmed its consent to the terms spelt out in the Appellant's email that finally found place in Contract which was accepted and acted by Respondent.

Mandate of pre-institution mediation cannot be evaded under the guise of seeking urgent interim relief

Delhi High Court ("DHC") upholds that pre-institution mediation is mandatory in Commercial Courts Act, 2015 ("the Act") and cannot be casually circumvented under the guise of seeking urgent interim relief. The Court further held that the exception carved out under relevant provisions of the Act must be interpreted narrowly and invoked only when the Plaintiff demonstrates a bona fide, immediate, and irreparable threat to its rights, one that cannot wait for conclusion of the mediation process.

Validity of a unilateral appointment of an arbitrator clarified

The legal position regarding the invalidity of a unilateral appointment of an arbitrator has been reiterated by DHC. Despite no objections from the parties, the Court found the unilateral appointment invalid, as it violated the Arbitration and Conciliation Act, 1996 provisions. The Court emphasized that an award made by a conflicted arbitrator is against public policy and cannot be upheld.