GST Compendium: August 2025

Thought leadership

14 Aug 2025 2 min read

Shifting trade policies, evolving legal interpretations, and notable judicial rulings are redefining India’s indirect tax environment. The August 2025 edition of GST Compendium provides key global and domestic updates with implications for industry stakeholders and tax professionals. Internationally, recent tariff measures and strategic trade agreements have affected market access and export dynamics across multiple sectors. On the domestic front, GST performance indicators reflect sustained economic activity and compliance trends. Significant court decisions have addressed the scope of taxable transactions, the transfer of input tax credit post-amalgamation, and the limits of retrospective taxation in customs matters, offering greater procedural clarity. The edition also covers developments in direct taxes, including policy notifications, treaty amendments, and judicial interpretations on permanent establishment considerations.

Key highlights of the GST Compendium August 2025

Important updates/announcements: Two landmark trade agreements that deepen India's global trade footprint are helping to offset the challenge caused due to Trumps 50% reciprocal tariffs on India. First, the signing of the India–UK Comprehensive Economic and Trade Agreement (CETA) promises to double bilateral trade by 2030, offering Indian exporters duty-free access to over 99% of UK tariff lines and creating new opportunities in textiles, leather, marine products, engineering goods, and services. Second, Switzerland's ratification of the India–EFTA Trade and Economic Partnership Agreement (TEPA) on June 10, 2025, marks India's first trade pact with a developed-country bloc.
Judicial pronouncements: The Supreme Court emphasised the mandatory nature of reasoned orders in GST proceedings, ruling that even when tax and penalty are paid to release detained goods, adjudication through a speaking order is essential to uphold the right to appeal.
Important developments in direct taxes: CBDT has notified the list of payments to IFCS units on which tax is not required to be deducted. It has also issued clarification regarding the waiver of interest on delay in payment of TDS/TCS in certain cases and further provided relief from the applicability of higher rate of TDS/TCS in certain cases where PAN becomes inoperative.