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Monthly Tax Bulletin: September 2025

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The September 2025 edition of the Grant Thornton Bharat Monthly Tax Bulletin captures key developments under the direct taxes, transfer pricing, indirect taxes, and FEMA, for August 2025.
Contents

Key highlights

  • The 56th GST Council meeting, held on 3 September 2025, unveiled the highly anticipated “GST 2.0” — a landmark reform introducing a simplified two-slab structure (5% for essentials, 18% for standard goods and services) and a new 40% rate for luxury and sin goods, effective 22 September 2025.
  • The US has imposed 50% reciprocal tariffs on the import of Indian goods effective 27 August 2025, while a US Court of Appeals has ruled that US President Donald Trump's reciprocal tariffs are illegal.
  • The Supreme Court dismisses the Revenue's review petition; rules that payments for bandwidth and interconnect usage charges do not qualify as royalty.
  • The government withdraws the Income-tax Bill, 2025 (IT Bill) and reintroduces the new IT Bill in the parliament, along with the Taxation Laws Amendment Bill, 2025.
  • The RBI removes prior approval requirement for opening Special Rupee Vostro accounts.
  • The Supreme Court provides a split view on the interplay of sections for determination of the limitation period regarding DRP Directions.
Monthly Tax Bulletin: September 2025
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Monthly Tax Bulletin: September 2025

The September 2025 edition of the Grant Thornton Bharat Monthly Tax Bulletin captures key developments under the direct taxes, transfer pricing, indirect taxes, and FEMA, for August 2025.

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