Key Tax Updates: GST Clarifications & Income Tax Amendments
The government has issued two important updates affecting GST rates and Income Tax compliance.
1. GST Clarifications – Circular No. 247/04/2025-GST (Dated 14th February 2025)
Based on the decisions of the 55th GST Council meeting, this circular provides clarity on GST classification and rates for specific goods, including:
🔹 Pepper (Genus Piper) – GST rate clarification.
🔹 Raisins Supplied by Agriculturists – Tax treatment outlined.
🔹 Ready-to-Eat Popcorn – Categorization and applicable GST rate.
🔹 Fly Ash-Based AAC Blocks – GST classification.
🔹 Compensation Cess on Specific Motor Vehicles – Effective date announced.
This aims to resolve industry doubts and ensure uniform tax compliance.
2. Income Tax (Seventh Amendment) Rules, 2025 – Notification G.S.R. 195(E) (Dated 27th March 2025)
A key change in Income Tax compliance is the introduction of Rule 194T, which mandates TDS on payments made to partners of a firm. This covers:
✅ Salary
✅ Commission
✅ Bonus
✅ Interest
Additionally, Forms 26Q and 27Q have been updated to reflect these changes, ensuring streamlined TDS reporting.
Conclusion
These updates aim to bring more clarity in tax administration and enhance compliance. Businesses must review their GST and TDS obligations to ensure smooth tax filings.
For expert assistance in adapting to these changes, consult a tax professional today!
