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We are pleased to present the sixth edition of our Trade and Taxation Newsletter, sharing important updates, key developments, and practical insights on trade and taxation, all tailored to help you stay ahead in an ever-changing regulatory environment.
We hope you find this newsletter useful and informative, and we look forward to your continued engagement.
TAX TRIVIA
"Appeasement cannot bring peace, and compromise cannot earn one respect", a Chinese Commerce Ministry spokesperson said.
I.TAX UPDATES
DIRECT TAX
Vivad se Vishwas Scheme to come to an end on 30th April 2025
Direct Tax Vivad se Vishwas Scheme, 2024, was introduced by the Finance (No. 2) Act, 2024 to reduce pending income tax litigation and provide an alternate dispute settlement mechanism to eligible taxpayers. CBDT has now notified 30th April 2025 as the last date to file declaration under the Scheme.
CBDT Notification No. 32/2025, dated 7th April 2025
CBDT issues FAQs on revised guidelines for compounding of offences
CBDT had on 17.10.2024 issued revised guidelines for compounding offences under the Income-tax Act, 1961 superseding all previous guidelines. In order to clarify certain misgivings of taxpayers, the CBDT has now issued detailed clarifications regarding the revised guidelines in the form of FAQs.
CBDT Circular No. 04/2025, dated 17th March 2025
CBDT amends Safe Harbour Rules for determination of arm's length price
CBDT has amended Rules 10TA and 10TD of Income-tax Rules, 1962, to expand the scope of safe harbour rules relating to determination of arm's length price of international transactions between related parties. The turnover threshold for availing benefits of safe harbour rules has been increased from Rs. 200 crore to Rs. 300 crores. Further, lithium-ion batteries used for electric and hybrid vehicles, have been included in the definition of 'core auto components'.
CBDT Notification No. 21/2025, F. No. 370142/6/2025-TPL, 25th March 2025
No TDS on withdrawals by individuals from notified pension scheme
Finance Act 2025 had granted exemption from tax in respect of withdrawals made by an individual from National Pension Scheme etc., on or after August 29, 2024. Following this, CBDT has now notified that that TDS under section194-EE shall not be deducted from such withdrawals.
Notification no. 27/2025, dated 4th April 2025
INDIRECT TAX
CUSTOMS
Amendments brought in the CAROTAR Rules to replace 'Certificate of Origin' with 'Proof of Origin'
The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) have been amended by the Government, primarily replacing the term "Certificate of Origin" with "Proof of Origin" across various provisions of the rules. This change aims to streamline and simplify compliance required for claiming preferential rate under various trade agreements.
[Notification No. 14/2025 - Customs (N.T.) dated March 18, 2025]
Postal Imports Regulations, 2025 introduced
The Government has introduced Postal Imports Regulations, 2025, for assessment and clearance of goods imported through Foreign Post Offices. These regulations shall not be applicable for import of the following goods requiring testing of samples thereof before their clearance -
(i) animals and parts thereof, plants and parts thereof
(ii) perishables
(iii) publications containing maps depicting incorrect boundaries of India
(iv) precious and semi-precious stones, gold or silver in any form
These regulations shall also not apply on import of goods under any export promotion scheme referred to in the Foreign Trade Policy.
[Notification No. 18/2025 - Customs (N.T.) dated March 28, 2025, and Corrigendum]
Export Entry (Post export conversion in relation to instrument based scheme) Regulations, 2025, introduced
The Government has introduced new Export Entry (Post export conversion in relation to instrument based scheme) Regulations, 2025, superseding the Shipping Bill (Post export conversion in relation to Instrument Based Scheme) Regulations, 2022. These regulations will govern the procedure for conversion of all forms of export entry, Shipping Bills, Postal Exports, Baggage Exports, etc, and the conditions and retractions for the same. The procedure for electronic processing of amendments under Section 149, provisional assessments, Re-transmission of relevant details to the agencies concerned, has been digitalized.
[Notification No. 21/2025 - Customs (N.T.) dated April 03, 2025, and Circular No. 11/2025 - Customs dated April 03, 2025]
Guidelines provided for documentation and compliances for faceless assessment process
For proper facilitation and faster clearance of the goods in faceless assessment, public notice has been issued by the Principal Commissioner of Customs, Bengaluru, advising to take the following measures:
i. Study the compliance requirements for the goods imported and upload all the required documents under e-Sanchit in support of their claim of meeting those requirements.
ii. Study the conditions listed against the notification for claim of any duty benefit, and ensure that documents in support of their claim are filed along with the B/E.
iii. Upload on e-Sanchit the product catalogue/Product Data Sheet/ User manual/ Technical write-up etc to ensure correct classification of goods. Provide complete details/ specifications/ descriptions/ brand/ name/ model/ mandatory documents essential for assessment. Further, it is advised to upload and link all the relevant and supporting documents at the first instance to avoid queries and delays.
iv. Wherever required upload the additional documents like Bureau of Indian Standards (BIS), equipment type approval (ETA)/ wireless planning and coordination (WPC), extended producer responsibility (EPR), legal metrology packaged commodity (LMPC), shipping bill copy, proof of surrender of export benefits, etc. on e-Sanchit.
v. To feed all the details/information etc. needed for assessment at the time of filing of BE and to indicate end use of consignments viz. time-sensitive/ urgent consignments such as lifesaving drugs, security/ defence related consignments etc. imported by Government and its agencies/ PSUs etc in the B/E for easier identification of such consignments, so that PAG/ FAG will clear above consignments on priority basis.
vi. Whenever amendment is sought, the reasons for amendment and the documents in support of the amendment sought should be uploaded in e-Sanchit. This will facilitate the clearance/ approval process.
vii. Customs broker must ensure sufficient balance in the license/ bond to be debited. They should enter the correct unique quantity code (UQC) as per customs tariff heading (CTH). The customs brokers are requested to use appropriate code while uploading the documents in e-Sanchit depending upon the type of document uploaded and may refrain for using general code such as that of registration document (101000) when specific code is available for the document.
[Public Notice No. 06/2025 dated March 30, 2025]
Import of Monitors (other than IFPD) does not attract conditions specified under IGCR Rules for claiming exemption rate of BCD @ 10%.
Prior to 2025-26 Budget, import of monitors (CTH 85285900) attracted BCD @ 10%. In the 2025-26 Budget, BCD on Interactive Flat Panel Displays (IFPDs – CTH 85285900) was increased from 10% to 20%. However, all monitors (other than IFPDs) classified under tariff item 85285900 continued to attract 10% BCD, under an exemption notification subject to the condition that the requirements of the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 ('IGCR Rules'). This condition has now been removed by the Government. Imports of Monitors under CTH 85285900 continues to attract 10% BCD under the exemption notification without any condition.
[Notification No. 23/2025 - Customs dated April 04, 2025, read with Circular No. 12/2025 - Customs dated April 07, 2025]
Import of Bengal Gram (desi chana) exempt from levy of SWS and AIDC
The Government has exempt import of Bengal Gram (desi chana) classified under CTH 0713 20 20 from levy of Social Welfare Surcharge by inserting the said tariff heading under Notification No. 11/2018 - Customs dated February 02, 2018. Similarly, these goods have also been exempted from the levy of Agriculture Infrastructure and Development Cess by amendment in the Notification No. 11/2021 - Customs dated February 01, 2021.
[Notification No. 20/2025 - Customs dated March 27, 2025]
Navi Mumbai and Noida International (Jewar) notified as Customs Airport
The CBIC has notified Navi Mumbai and Noida International (Jewar) as Customs Airport for unloading of imported goods and the loading of export goods or any class of such goods.
[Notification No. 15/2025 - Customs (N.T.) dated March 24, 2025]
Export Duty on Onions withdrawn
The Government has amended Notification No. 27/2011- Customs dated March 01, 2011, to withdraw the export duty of 20% on Onion (CTH 0703 10). Post amendment, the duty on exports of Onion is 'nil'.
[Notification No. 19/2025 - Customs dated March 22, 2025]
Condition for exemption from BCD on re-import of cut and polished diamonds after certification / grading by the laboratories /agencies, modified.
Notification No. 09/2012 - Customs dated March 09, 2012, prescribed certain conditions to be met for claiming exemption from payment of BCD on cut and polished diamonds, when re-imported into India after certification/grading by the laboratories / agencies as notified in the Foreign Trade Policy. One of the conditions specified was that Cut and polished diamonds when re-imported shall match with corresponding diamonds mentioned in the invoice at the time of exportation in terms of value, height, circumference and weight. The condition also specified the variance, allowed between the diamonds mentioned in the invoice, when exports and the goods re-imported. This criterion has been modified, as:
"Provided that a variance not exceeding ± 0.05 mm in diameter for round shape diamonds and ± 0.07 mm in length and breadth for diamonds of other shapes, variance not exceeding ±0.01mm in height and variance not exceeding ± 1 cent in weight shall be allowed."
[Notification No. 18/2025 - Customs dated March 20, 2025]
List of goods eligible for preferential rate of duty revised when imported from UAE and Mauritius
The Central Government has revised the list of goods eligible for preferential rate of BCD, when imported from United Arab Emirates in terms of India- UAE CEPA and from Mauritius in terms of India – Mauritius Comprehensive Economic Cooperation and Partnership Agreement. However, goods in respect of which Automatic Trigger Safeguard Mechanism (ATSM) is invoked in accordance with the Side Letter to the Comprehensive Economic Cooperation and Partnership Agreement between the India and Mauritius, as issued by India, are excluded.
[Notification No. 21/2025-Customs, dated March 28th, 2025, and Notification No. 22/2025-Customs, dated March 28th, 2025]
Circular providing the procedure for transhipment of Export Cargo from Bangladesh to third countries, rescinded
CBIC had issued Circular No. 29/2020 - Customs dated June 22, 2020, providing for a procedure for transhipment of Export Cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to Port / Airport, in containers or closed bodied trucks. This Circular has now been rescinded by the CBIC from April 08, 2025. Cargo entered into India prior to April 08, 2020, will be allowed to exit Indian territory as per the procedure set out in the Circular No. 29/2020.
[Circular No. 13/2025 - Customs dated April 08, 2025]
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