[October, 2025] -> GST Council Approves Next-Gen GST 2.0 Reform: The 56th GST Council meeting approved a simplified two-tier tax structure (5% and 18%) and a 40% de-merit rate for sin goods. This reform eliminates the 12% and 28% slabs to reduce classification disputes and exempts individual health/life insurance premiums from GST.
[October, 2025] -> Import Duty Exemption on Cotton Extended: The government extended the duty-free import policy for cotton until December 31, 2025, to lower input costs for the textile value chain. This move aims to mitigate the impact of 50% tariffs imposed by the US on Indian textile exports.
[September, 2025] -> Income Tax Act 2025 Receives Presidential Assent: The new Act replaces the Income Tax Act of 1961, reducing sections from 819 to 536 to simplify the direct tax regime. It formally introduces the concept of a ‘Tax Year’ (April 1 start) to replace ‘Assessment Year’ and streamlines provisions for digital transactions,.
[September, 2025] -> Rollout of GST 2.0 “GST Bachat Utsav”: The government launched GST 2.0 reforms focusing on rate rationalisation and simplified compliance. Key changes include reducing rates on over 375 items and automating refunds to boost consumption and investment, termed as the “GST Bachat Utsav”.
[August, 2025] -> Withdrawal of Digital Services Taxes (Equalisation Levy): The 2% equalisation levy on e-commerce supplies was removed in August 2024, and the 6% levy on online advertising services is withdrawn from April 2025 via the Finance Act, 2025. This aligns India with the OECD global tax framework.
[July, 2025] -> Debate on State Compensation for GST Reforms: With the end of the GST compensation cess in July 2025, states demanded a larger share of the divisible tax pool or a new stabilization fund. The Centre’s reliance on non-shareable cesses has shrunk the divisible pool from 88.6% to 78.9%, raising federal fiscal concerns.
[July, 2025] -> 8 Years of GST Implementation: Marking 8 years of GST, the government highlighted the growth of the taxpayer base to 1.45 crore and monthly collections averaging ₹1.65 lakh crore. Automation has significantly improved IGST refund processing for exporters, though compliance burdens for MSMEs remain a challenge.
[May, 2025] -> 16th Finance Commission and Fiscal Devolution: The 16th Finance Commission faces the challenge of addressing the shrinking divisible tax pool due to rising cesses and surcharges. States are demanding a cap on these non-shareable levies and an increase in the vertical devolution share beyond 41%,.
[February, 2025] -> Union Budget 2025-26 Tax Reforms: The budget increased the income tax exemption limit to ₹12 lakh under the new regime and raised the standard deduction to ₹75,000. It also introduced a presumptive taxation regime for non-residents in electronics manufacturing to reduce litigation.
[December, 2024] -> Withdrawal of Windfall Gains Tax: The government withdrew the windfall gains tax on domestic crude oil production and exports of diesel, petrol, and ATF. Initially introduced in 2022 to capture super-normal profits during global oil price surges, its removal aims to encourage private sector investment.
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Indian Taxation System Current Affairs ▼
[October, 2025] -> GST Council Approves Next-Gen GST 2.0 Reform: The 56th GST Council meeting approved a simplified two-tier tax structure (5% and 18%) and a 40% de-merit rate for sin goods. This reform eliminates the 12% and 28% slabs to reduce classification disputes and exempts individual health/life insurance premiums from GST.
[October, 2025] -> Import Duty Exemption on Cotton Extended: The government extended the duty-free import policy for cotton until December 31, 2025, to lower input costs for the textile value chain. This move aims to mitigate the impact of 50% tariffs imposed by the US on Indian textile exports.
[September, 2025] -> Income Tax Act 2025 Receives Presidential Assent: The new Act replaces the Income Tax Act of 1961, reducing sections from 819 to 536 to simplify the direct tax regime. It formally introduces the concept of a ‘Tax Year’ (April 1 start) to replace ‘Assessment Year’ and streamlines provisions for digital transactions,.
[September, 2025] -> Rollout of GST 2.0 “GST Bachat Utsav”: The government launched GST 2.0 reforms focusing on rate rationalisation and simplified compliance. Key changes include reducing rates on over 375 items and automating refunds to boost consumption and investment, termed as the “GST Bachat Utsav”.
[August, 2025] -> Withdrawal of Digital Services Taxes (Equalisation Levy): The 2% equalisation levy on e-commerce supplies was removed in August 2024, and the 6% levy on online advertising services is withdrawn from April 2025 via the Finance Act, 2025. This aligns India with the OECD global tax framework.
[July, 2025] -> Debate on State Compensation for GST Reforms: With the end of the GST compensation cess in July 2025, states demanded a larger share of the divisible tax pool or a new stabilization fund. The Centre’s reliance on non-shareable cesses has shrunk the divisible pool from 88.6% to 78.9%, raising federal fiscal concerns.
[July, 2025] -> 8 Years of GST Implementation: Marking 8 years of GST, the government highlighted the growth of the taxpayer base to 1.45 crore and monthly collections averaging ₹1.65 lakh crore. Automation has significantly improved IGST refund processing for exporters, though compliance burdens for MSMEs remain a challenge.
[May, 2025] -> 16th Finance Commission and Fiscal Devolution: The 16th Finance Commission faces the challenge of addressing the shrinking divisible tax pool due to rising cesses and surcharges. States are demanding a cap on these non-shareable levies and an increase in the vertical devolution share beyond 41%,.
[February, 2025] -> Union Budget 2025-26 Tax Reforms: The budget increased the income tax exemption limit to ₹12 lakh under the new regime and raised the standard deduction to ₹75,000. It also introduced a presumptive taxation regime for non-residents in electronics manufacturing to reduce litigation.
[December, 2024] -> Withdrawal of Windfall Gains Tax: The government withdrew the windfall gains tax on domestic crude oil production and exports of diesel, petrol, and ATF. Initially introduced in 2022 to capture super-normal profits during global oil price surges, its removal aims to encourage private sector investment.
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