Staying Compliant: Key Tax Updates and Deadlines for Summer 2025

The world of taxation is ever-evolving, and staying abreast of the latest changes is crucial for businesses and individuals alike. This summer brings several important updates from both the Income Tax Department and the Central Goods and Services Tax (CGST) department. In this blog post, we'll break down the key notifications and circulars you need to be aware of, and provide a handy calendar to ensure you meet all your compliance deadlines.

Income Tax Updates:

The Central Board of Direct Taxes (CBDT) has been active in issuing circulars and notifications to clarify provisions and extend deadlines. Here are some of the most significant recent developments:

• ITR Filing Deadline Extended: In a major relief to taxpayers, the due date for filing Income Tax Returns (ITRs) for the Assessment Year 2025-26 has been extended. The original deadline of July 31, 2025, has been pushed to September 15, 2025. This extension, announced in Circular No. 06/2025, provides much-needed extra time for individuals and businesses to file their returns accurately.

• Relaxation for TDS/TCS Filings: The CBDT has acknowledged technical difficulties faced by taxpayers in making TDS/TCS payments. To alleviate this, interest on delayed payments has been waived in specific cases. Furthermore, Circular No. 07/2025 provides for a relaxation of the time limit for processing conditionally accepted ITRs filed under Section 119(2)(b).

• New Guidelines for Compounding of Offences: In a move towards simplification, the CBDT has issued revised guidelines for the compounding of offences under the Income-tax Act, 1961. These new guidelines, detailed in Circular No. 04/2025, eliminate the categorization of offences and remove the limit on the number of times an application for compounding can be filed.

• Clarification on Interest Waiver: Circular No. 08/2025 clarifies the conditions for waiving interest under sections 201(1A)(ii) and 206C(7) of the Income-tax Act, offering relief to taxpayers who have faced genuine hardships.

CGST Updates:

The Central Board of Indirect Taxes and Customs (CBIC) has also been busy with several important notifications and circulars under the CGST Act. Here's a summary of the key changes:

• Clarification on Availing Benefit of Section 128A: GST Circular No. 248/2025 provides important clarifications on the availment of benefits under Section 128A of the CGST Act, 2017. This section provides for the waiver of interest or penalty, or both, for demands raised under Section 73 for the period from July 1, 2017, to March 31, 2020. The circular clarifies that tax payments made via FORM GSTR-3B before November 1, 2024, will be considered valid for claiming this benefit.

• Amendment to CGST Rules: Notification No. 11/2025 – Central Tax has amended Rule 164 of the CGST Rules, 2017. This amendment provides clarity on the procedures for availing waivers of interest and penalties for the period from July 1, 2017, to March 31, 2020, especially in cases where notices or orders cover both eligible and non-eligible periods.

• GST Rate and Classification Clarifications: The GST Council's 55th meeting resulted in several clarifications regarding GST rates and the classification of goods and services. These have been detailed in recent notifications and circulars, providing much-needed clarity to the industry.

Tax Calendar - Important Due Dates:

• July 10, 2025: GSTR-7 & GSTR-8

• July 11, 2025: GSTR-1 (Monthly)

• July 13, 2025: GSTR-5 & GSTR-6

• July 13, 2025: GSTR-1 (QRMP)

• July 20, 2025: GSTR-3B (Monthly) and GSTR-5A: Monthly Return by OIDAR Service Provider

• July 22 & 24, 2025: GSTR-3B (QRMP) - Dates vary by state/UT

• September 15, 2025: Due date for filing ITR for AY 2025-26

Conclusion:

Keeping up with the frequent changes in tax laws is a challenge, but it's a necessity for smooth business operations and avoiding penalties. We hope this summary of recent updates and the accompanying tax calendar will help you stay compliant. For personalized advice and assistance, please don't hesitate to contact us at PGT & Associates.