The December 2025 GST Compendium presents a focused assessment of recent legislative actions, judicial positions, and policy measures influencing indirect tax administration. The publication highlights developments across GST, customs, FTP, SEZ, and erstwhile indirect tax frameworks, offering direction to businesses adapting to refined compliance standards and adjudicatory trends. The December 2025 edition of our GST Compendium publication discusses significant interpretations issued by various High Courts, the streamlined digital processes introduced by authorities, and the policy initiatives shaping future-ready operational structures.
Key highlights of the GST Compendium December 2025
- Important updates/announcements: The extension of FEMA realisation timelines to 15 months now provides exporters with a stronger statutory basis to defend delayed foreign-exchange receipts, directly impacting exports of goods and services under GST. Concurrently, the Government has proposed two major legislative changes: the Central Excise (Amendment) Bill, 2025, which restructures the excise regime for tobacco products in anticipation of the GST compensation cess phase-out, and the Health Security cum National Security Cess Bill, 2025, which introduces a new machine-based cess on products such as pan masala and chewing tobacco. Additionally, CBIC has operationalised a fully digital ICEGATE 2.0 module for permissions under Section 65 (MOOWR, 2019 and MOOSWR, 2020), enhancing transparency and efficiency in bonded-warehousing administration.
- Key judicial pronouncements: A major development this month came from Gujarat HC in the Priya Blues Pvt Ltd. case, where the constitutional validity of the 180-day payment rule for the ITC availment was challenged. Additionally, the Chhattisgarh HC, in the South Eastern Coalfields case, held that central adjudication is not barred merely because state authorities have initiated proceedings that have not culminated in any adjudication.
- Significant updates in direct taxes: From a direct tax and international tax standpoint, November also witnessed key developments. The Ministry of Finance (MoF) has notified the revised DTAA and protocol with India-Qatar, as well as the enforcement of the amending protocol to the DTAA between India and Belgium.
The release examines important rulings on refund entitlements, valuation principles, adjudication authority, export-related procedures, and sector-specific provisions. It also reviews major regulatory actions, including procedural enhancements on the ICEGATE 2.0 platform, revised documentation protocols under DGFT, and aligned measures supporting export competitiveness.
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