GST & Income Tax Consultants

16/04/2026

New MSME 45 Days Payment Rule (INCOME TAX DISALLOWANCE)

Section 43B(h), effective April 1, 2024 (FY 2024-25), mandates that payments to registered Micro and Small Enterprises (MSEs) must be made within 15 days (or 45 days with a written agreement). Delayed payments are disallowed as deductions in the current year,, and allowed only in the year of actual payment, increasing the immediate tax liability.

Key Aspects of MSME Disallowance (Section 43B(h))

Applicability: Applies only to payments made to Micro and Small enterprises registered under the MSMED Act, 2006. Medium enterprises are not covered.

Time Limits (Section 15 of MSMED Act):

With Agreement: If a written agreement exists, payment must be within the agreed timeframe, which cannot exceed 45 days.
Without Agreement: If no written agreement exists, payment must be within 15 days.

Consequence of Delay: If payment is not made within the specified time, the expense is disallowed in the current financial year and allowed as a deduction only in the year of actual payment.

Crucial Deadlines: If goods/services are received in FY 2025-26 and payment is not made within 45 days, the deduction is deferred.

Exclusions: The provision does not apply to transactions with traders or medium enterprises, only to manufacturers/service providers registered as micro or small.

31/03/2026

The government has notified income tax return forms (ITR-1 to ITR-7) for the Assessment Year (AY) 2026–27. This means individuals, pensioners, professionals and other taxpayers can now use the applicable forms and file their income tax return (ITR) on or before July 31, 2026. Additionally, ITR-V (verification form) and ITR-U (updated return form) have also been notified.

“For Financial Year 2025–26, assessment will continue under the Income Tax Act, 1961 and not the Income Tax Act, 2025. Accordingly, the ITR forms will be aligned with the 1961 law as amended by the Finance Act, 2026. Therefore, taxpayers will continue to see terms like ‘Assessment Year’ and ‘Previous Year’, not ‘Tax Year’,”

Who needs to file ITR-1?
ITR-1 (Sahaj) is meant for resident individuals with a total income of up to Rs 50 lakh, earned from salary or pension, one house property, and other sources such as interest. It can also be used if you have long-term capital gains under Section 112A up to Rs 1.25 lakh, as long as there are no carry forward capital losses.

However, this form is not applicable if you have income from business or profession, own more than one house property, have capital gains beyond the specified limit, hold foreign assets, or if your total income exceeds Rs 50 lakh.

Who is eligible to file ITR-2?
ITR-2 is meant for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It applies to those earning income from capital gains, owning more than one house property, having foreign income or assets, as well as non-resident individuals (NRIs).

In simple terms, if you are not eligible to file ITR-1 and do not have business or professional income, ITR-2 is the appropriate form to use.

Who needs to file ITR-3?
ITR-3 is meant for individuals and Hindu Undivided Families (HUFs) who earn income from a proprietary business or profession. It is applicable in cases where the taxpayer maintains regular books of accounts, typically when the total income exceeds Rs 50 lakh.

Who needs to file ITR-4?
ITR-4 (Sugam) is meant for resident individuals, HUFs and firms with total income up to Rs 50 lakh who opt for the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE. It can also include income from salary or pension, one house property, and other sources.

ITR-5, 6, and 7 are tax forms for non-individual entities in India. ITR-5 is used by partnership firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Co-operative Societies. ITR-6 is strictly for companies (both public and private) that do not claim exemptions for charitable or religious purposes. ITR-7 is dedicated to entities required to file under Section 139, including charitable or religious trusts, political parties, and scientific research associations.

ITR-U: Extended window to correct past returns The updated ITR-U form provides taxpayers with an opportunity to rectify errors or omissions in previously filed returns. As per the notified rules, taxpayers can file an updated return within 48 months (four years) from the end of the relevant assessment year.

Income Tax Return Verification ITR-V (Income Tax Return Verification) is the acknowledgement form generated after filing your income tax return, which must be verified within 30 days of filing to be considered valid. Verification can be done online via e-Verification (Aadhaar OTP, Net banking, EVC) or by mailing a signed physical copy to CPC Bangalore.

30/12/2025

06/12/2025

Auto Suspension of Gst Registration

01/10/2025

E-commerce platforms are under the government’s scanner for not passing on benefits of reduced GST rates to consumers. This comes after the government

20/09/2025

19.09.2025: CBIC issues FAQ-4 on fresh advisory issued by the Department of Consumer Affairs related to GST rate revision

The CBIC has issued FAQ-4 in the wake of the GST revisions and recommendations made in the 56th GST Council Meeting (03.09.2025). The Central Government and relevant authorities including the National Pharmaceutical Pricing Authority (NPPA) have issued clarifications.

Q. As per Department of Consumer Affairs’ Advisory dated 9th September, 2025 manufacturers, packers or importers of pre-packaged commodities were permitted to revise retail sale price on unsold stock, manufactured/packed or imported prior to rate revision by way of putting sticker /stamping or online printing after complying with certain conditions, such as, advertising in two newspapers. Is re stickering /stamping or online printing on unsold stock, manufactured/packed or imported prior to rate revision and advertising in two newspapers mandatory? The Department of Consumer Affairs has issued an Advisory dated 18th September, 2025 in supersession of earlier advisory dated 9th September 2025. The gist of the advisory is as under:

• Manufacturers/packers/importers/ their representatives to voluntarily affix additional revised price sticker, on unsold packages manufactured before 22nd September, 2025, and are lying with them, provided the original price declaration on the package is not obstructed.

• The requirement to issue advertisement about revised prices in two newspapers has been waived off.

• Manufacturers/ packers/ importers are now required to send circulars to wholesale dealers/ retailers, etc about revised prices with copy thereof endorsed to Director, Legal Metrology of the Central Government and Controller, Legal Metrology of all States/ UTs and to ensure price compliance at the retailer level.

• Manufacturers/packers/importers shall take immediate measures to sensitise dealers/ retailers/ consumers about revision in GST rates through all possible channels of communication including electronic, print and social media.

17/09/2025

New Gst Update Today Notification

Date 17.09.2025
CBIC ISSUED NOTIFICATIONS TO GIVE EFFECT TO THE RECOMMENDATIONS OF THE 56TH COUNCIL MEETING, IN RESPECT TO RATE ON GOODS

08/09/2025

GST revision list (effective 22nd September 2025).
Here’s the table-wise summary of key categories and rate changes:

>Food & Agro Products 🍎🌾🌽

Item Old Rate New Rate

Tax Rate Reductions on Food Items

Dairy Products
• UHT Milk 5% to Nil
• Condensed Milk 12% to 5%
• Butter, Ghee, Dairy Spreads 12%to 5%
• Cheese 12% to 5%
• Paneer (pre-packaged) 5% to Nil

Dried Goods
• Dry Fruits & Nuts (almonds, pistachios, etc.) 12% to 5%
• Dates, Figs, Mangoes (dried) 12% to 5%

Processed Foods and Baked Goods
• Malt (roasted/not) 18% to 5%
• Pasta, Noodles, Couscous 12% to 5%
• Cakes, Biscuits, Pastries 18% to 5%
• Roti, Chapati, Khakhra 5% to Nil
• Paratha, Parotta 18% to Nil
• Namkeens, Bhujia, Mixtures (packaged) 12% to 5%
• Ice Cream 18% to 5%

Other Items
• Pan Masala 28% to 40%

> Beverages & To***co 🍹🚬🥤

Item Old Rate New Rate

Tax Rates on Various Products

Beverage Tax Rates
• Mineral & Aerated Water 18% to 5%
• Flavoured/Sweetened Drinks 28% to 40%
• Coffee, Tea Extracts 12–18% to 5%

Additional Beverage Taxes
• Carbonated Fruit Beverages 28% to 40%
• Caffeinated Beverages 28% to 40%

To***co Tax Rates
• To***co (unmanufactured, ci**rs, ci******es) 28% to 40%
• Bidis 28% to 18%

> Construction & Raw Materials🧱🏗️🪨

Item Old Rate New Rate

Cement (all types) 28% to 18%
Coal, Briquettes 5% to 18%
Marble, Granite Blocks 12% to 5%

>Medicines & Healthcare 💊🏥⚕️

Item Old Rate New Rate

Life-saving Medicines (rare diseases) 5–12% to Nil
Other Medicines & Vaccines 12% to 5%
Medical Oxygen 12% to 5%
Bandages, Dressings 12% to 5%

>Personal Care & Household 🧼🏠🧺

Item Old Rate New Rate

Tax Rate Reductions on Various Products

Personal Care Products
• Shampoo, Hair Oil, Soaps, Toothpaste 18% to 5%
• Talcum Powder, Shaving Cream 18% to 5%

Household and Traditional Items
• Utensils (steel, brass, copper, aluminium) 12% to 5%
• Handicrafts (wood, metal, ceramic, bamboo) 12% to 5%
• Toys, Musical Instruments (traditional) 12% to 5%

>Electronics & Appliances 💡🔌💻.

Item Old Rate New Rate

TVs, Refrigerators, Washing Machines 28% to 18%
ACs, Dishwashers, Microwave Ovens 28% to 18%
Sewing Machines 12% to 5%
Lighting Fixtures 28% to 18%

>Automobiles 🚗💨✨

Item Old Rate New Rate

Tax Rate Adjustments for Various Vehicle Categories

Motorcycle Tax Rates
• Motorcycles ≤ 350cc 28% to 18%
• Motorcycles > 350cc 28% to 40%

Car Tax Rates
• Cars (small & mid-size) 28% to 18%
• SUVs & Luxury Cars 28% to 40%

Electric Vehicle Tax Rates
• Electric Vehicles (2W, 3W, 4W) 12% to 5%

Commercial Vehicle Tax Rates
• Buses, Trucks, Ambulances 28% to 18%

>Services 🧑‍💻 📡 💡

Service Old Rate New Rate

Tax Rate Changes in Various Sectors

Sectors with Significant Tax Reductions
• Beauty & Wellness, Gyms, Spas 18% to 5%
• Private Tuition & Coaching (up to Class 12) 18% to Nil
• Vocational & Skill Training 18% to Nil

Sectors with Moderate Tax Adjustments
• Charitable Hospitals & Trusts (Health/Edu) 12% to Nil
• Hotels (₹1,001–₹7,500 per day) 12% to 5%
• Cinema Tickets ≤ ₹100 12% to 5%

Insurance Premium Tax Changes
• Life, Health & General Insurance Premium 18% to Nil

✅ This is the item-wise GST revision master chart (2025).

Ovais Bhat
Tax Consultants