Weekly Round-up on Tax and Corporate Laws | 15th to 20th September 2025

This weekly newsletter analytically summarises the key stories reported at taxmann.com during the previous week from Sep 15th to Sep 20th, 2025, namely:

1. SEBI upgrades Social Stock Exchange (SSE) with new registration norms, disclosure and reporting requirements;
2. Private Trust Eligible for Section 54F Capital Gains Exemption on Residential Investment: ITAT;
3. No GST on Life and Health Insurance Services where insured is not a group: Notification
4. Central Goods and Services Tax (Third Amendment) Rules, 2025;
5. Govt. notifies due date for filing GST appeals before Appellate Tribunal: Notification;
6. CBIC exempts small taxpayers from filing annual GST return (GSTR-9): Notification;
7. Accounting treatment of liquidated damages and encashed bank guarantees under Ind AS framework; and
8. ICAI allows voluntary adoption of Guidance Notes for Non-Corporate Entities and LLPs in FY 2024–25.

1. SEBI upgrades Social Stock Exchange (SSE) with new registration norms, disclosure and reporting requirements

Social Stock Exchanges play a vital role in bridging the gap between social-purpose organisations and investors by creating a transparent and credible platform for funding impactful initiatives. On September 19, 2025, SEBI issued a circular revising the framework for Social Stock Exchanges (SSEs) following amendments to the ICDR and LODR Regulations. The revised framework modifies the eligibility requirements for Not-for-Profit Organisation (NPO) registration, enhances annual disclosure obligations on governance, financial, and outreach aspects, and strengthens reporting norms for Social Enterprises. The revised provisions shall come into effect immediately.

1.1 Background and Rationale

A ‘Social Stock Exchange’ means a separate segment of a recognized stock exchange having nationwide trading terminals permitted to register Not for Profit Organizations and/or list the securities issued by ‘Not-for-Profit Organisations’ in accordance with the provisions of Chapter X-A of the SEBI (ICDR), Regulations, 2018.

SEBI, vide. its circulars dated September 19, 2022, and December 28, 2023, had notified the detailed framework for the Social Stock Exchange. Based on the recommendations of the Social Stock Exchange Advisory Committee (SSEAC) and the feedback received through public consultation on the recommendations of SSEAC, the Board approved amendments to the SEBI (ICDR) Regulations, 2018, and the SEBI (LODR) Regulations, 2015. Accordingly, the provisions of the ICDR and LODR Regulations have been amended vide Gazette Notifications dated September 9, 2025, and September 8, 2025, respectively.

1.2 SEBI revises framework on Social Stock Exchange

Pursuant to the amendments to the ICDR Regulations and LODR Regulations, the circular dated September 19, 2022, regarding the framework on SSE has been partially modified. The modifications are as follows –

• SEBI widens the definition of Not-for-Profit Organizations eligible to list on SSE

SEBI has widened the definition of Not-for-Profit Organizations (NPOs) that are eligible to list on the SSE. Under the expanded framework, the definition now includes:

a) Trusts registered under the Indian Registration Act, 1908, with the relevant Sub-Registrar in those states that have not enacted the law governing public trusts;
b) A charitable society registered under the Societies Registration Act of the relevant state
c) Companies registered under section 25 of the erstwhile Companies Act, 1956

• Annual Impact Report (AIR) needs to be self-reported

If an NPO is registered without listing any securities, the Annual Impact Report (AIR) must be self-reported and must cover the NPO’s significant activities, interventions, programs or projects during the year. SEBI has clarified that the annual impact report must account for at least 67% of the program expenditure incurred in the previous financial year.

• Additional disclosure parameters to be submitted by NPOs annually

NPOs must make additional disclosures as specified by the SSE on an annual basis by October 31^st of each year or before the due date of filing the income tax return (ITR), whichever is later. Further, SEBI has bifurcated annual disclosure requirements into financial and non-financial matters, prescribing separate timelines for each.

Disclosures on general and governance aspects must be made within 60 days of the end of the financial year, while disclosures related to financial aspects must be submitted by October 31^st of each year or before the due date of filing the income tax return (ITR), whichever is later.

• Timeline for submission of duly assessed Annual Impact Report to SSE

All Social Enterprises (SEs) that have raised funds using SSE must submit a duly assessed Annual Impact Report to the SSE by October 31^st of each year or before the due date of filing the income tax return as prescribed under the provisions of the Income Tax Act, 1961, whichever is later.

• Annual Impact Report must be assessed by Social Impact Assessors

The Annual Impact Report (AIR) must be assessed by Social Impact Assessors, and the SEs must disclose the report of Social Impact Assessors along with the AIR.

1.3 Conclusion

Through these amendments, SEBI has sought to strengthen the Social Stock Exchange framework by expanding the scope of eligible organisations, enhancing disclosure standards, and making reporting more rigorous. The move is expected to improve transparency, accountability, and investor confidence, thereby enabling social-purpose entities to access capital in a more structured and credible manner.

Read the Circular

2. Private Trust Eligible for Section 54F Capital Gains Exemption on Residential Investment: ITAT

The assessee was a private trust established for the benefit of specific individuals. During the year under consideration, it sold a flat and claimed exemption under section 54F in respect of capital gains arising from the sale of the flat.

During the relevant assessment proceedings, the Assessing Officer (AO) disallowed the claim of the assessee on the ground that section 54F applied only to individuals and HUF and not to a trust. On appeal, the CIT(A) allowed the assessee’s claim. Aggrieved by the order, the AO preferred an appeal to the Delhi Tribunal.

The Tribunal held that it was a fact that the assessee was a private trust, established for the benefit of specific individuals. The trust income is taxable if it is the income of the beneficiary; it is not the case with a charitable trust. Furthermore, a charitable trust is treated as an AOP because its beneficiary is the public at large. In fact, if the beneficiary of the charitable trust is identified, the trust loses its charitable character.

In the instant case, the trust purchased certain land, and the sale of the flat thereon, through collaboration, generated income from capital gains. Against this, a residential house was purchased, and an exemption under Section 54F was claimed. If the assessee trust were not in existence, the same transaction would have been carried out in the name of beneficiaries therein, and the benefit would certainly be given to those beneficiaries under Section 54 of the Act as claimed.

Therefore, the order passed by the CIT(A) in granting relief under Section 54F of the Act, as claimed by the assessee under the facts and circumstances, was found to be just and proper.

Read the Ruling

3. No GST on Life and Health Insurance Services where insured is not a group: Notification

The CBIC has issued a notification extending GST exemption to life and health insurance services provided to individuals or individual with family, where the insured is not a group, along with corresponding reinsurance. This was stated in Notification No. 16/2025– Central Tax (Rate), Dated 17-09-2025.

Additionally, notifications were issued revising GST exemptions, prescribing concessional rates for petroleum operations, shifting ECO liability on local delivery services, and prescribing nil cess on specified goods.

About the Update

The CBIC has issued a notification amending Notification No. 12/2017–Central Tax (Rate), dated 28-06-2017. The exemption has been extended to services of life insurance business & health insurance provided by an insurer to the insured, where the insured is not a group and reinsurance of these insurance services.

It has also been clarified that such exemption will apply where the insured is an individual or an individual and family, and ‘family’ shall include all individuals insured as family under the contract.

Further, the CBIC has issued the following notifications:

• • Notification No. 10/2025-Central Tax (Rate): To amend the list of GST-exempt goods.
  • Notification No. 11/2025-Central Tax (Rate): To prescribe concessional GST rates on specified goods required for petroleum exploration and production operations.
  • Notification No. 17/2025-Central Tax (Rate): To provide that GST on local delivery services shall be paid by the e-commerce operator, except where the service provider is liable to register under Section 22(1) of the CGST Act.
  • Notification No. 02/2025-Compensation Cess (Rate): To amend the Compensation Cess rates to prescribe Nil cess on several goods such as aerated waters, lemonade, caffeinated and carbonated beverages, coal, lignite, peat, passenger vehicles (up to 13 persons), and certain motor vehicles.

Read the Notification

4. Central Goods and Services Tax (Third Amendment) Rules, 2025

The CBIC has issued a notification amending CGST Rules, 2017 to allow system-driven refund orders, single-Member Bench appeals, and revised appellate forms. FORM GSTR-9 and GSTR-9C were updated for ITC disclosure and e-commerce supplies. This was stated in Notification No. 13/2025-Central Tax (Rate), Dated 17-09-2025.

Notification No. 14/2025 -Central Tax (Rate), Dated 17-09-2025 was also issued to restrict provisional refunds from 01-10-2025 for incomplete Aadhaar or specified goods.

About the Update

The CBIC has issued a notification amending the CGST Rules, 2017. The amendments provide for issuance of refund orders in FORM GST RFD-04 within seven days based on system-driven risk evaluation, with discretion to proceed directly under rule 92. New provisions enable appeals to be heard by a single Member Bench where no question of law is involved. Substantial changes have been made in appellate procedures including introduction of FORM GST APL-02A and FORM GST APL-04A, along with substitution of FORM GST APL-05, APL-06 and APL-07.

Further, major revisions have been carried out in FORM GSTR-9 and FORM GSTR-9C relating to disclosure of input tax credit, cross-year availment, reclaimed credit, and reconciliation of tax including reporting of supplies on which tax is payable by e-commerce operators. These amendments will come into force from 22-09-2025, with specific provisions effective from 01-04-2025 and 01-10-2025.

Further, the CBIC video Notification No. 14/2025 – Central Tax provides that with effect from 01-10-2025, provisional refunds shall not be admissible in cases where Aadhaar authentication has not been completed, or where the applicant is engaged in the supply of specified goods including areca nuts, pan masala, tobacco and its substitutes, and essential oils.

Read the Notification

5. Govt. notifies due date for filing GST appeals before Appellate Tribunal: Notification

The CBIC has issued a notification specifying timelines for filing appeals before the Appellate Tribunal under the CGST Act. Appeals for orders communicated before 01-04-2026 may be filed up to 30-06-2026, and later orders within three months. Appeals pending before multiple State Benches with identical questions of law or under sections 14, 14A of IGST Act or section 20 of CGST Act will be heard by the Principal Bench.

This was stated in Notification No. S.O. 4220(E) and Notification No. S.O. 4219(E), both Dated 17-09-2025.

About the Update

The CBIC has issued a notification specifying timelines for filing appeals before the Appellate Tribunal under the CGST Act. It has been notified that appeals against orders communicated to the appellant before 01-04-2026 may be filed up to 30-06-2026. For orders communicated on or after 01-04-2026, the appeals may be filed within three months from the date of communication of the order.

Further, it is also notified that appeals pending before multiple State Benches with identical questions of law, or involving issues under sections 14, 14A of the IGST Act, or section 20 of the CGST Act, shall be heard exclusively by the Principal Bench.

Read the Notification

6. CBIC exempts small taxpayers from filing annual GST return (GSTR-9): Notification

The CBIC has issued a notification exempting small taxpayers with aggregate turnover up to RS. 2 crore from filing annual return under GST for financial year 2024-25 onwards. This was stated in Notification No. 15/2025 – Central Tax, Dated 17-09-2025.

About the Update

The CBIC has issued a notification to provide that registered persons whose aggregate turnover in any financial year is up to Rs. 2 crore shall be exempted from filing the annual return under GST for the financial year 2024-25 onwards. This exemption is aimed at reducing compliance burden for small taxpayers and simplifying GST procedures.

Read the Notification

7. Accounting treatment of liquidated damages and encashed bank guarantees under Ind AS framework

Companies engaged in large construction and infrastructure projects often encounter situations where contractors fail to meet timelines or contractual obligations. Such failures may trigger liquidated damages (LDs) or the encashment of bank guarantees (BGs). The accounting treatment of these amounts under the Ind AS framework depends on their nature and the degree of certainty regarding their ultimate settlement.

Under Ind AS 16, Property, Plant and Equipment, only costs directly attributable to bringing an asset to its intended operating condition can be capitalised. Other receipts or recoveries that do not contribute to asset readiness are recognised separately. Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, further requires recognition of liabilities where obligations exist and prohibits recognising uncertain reimbursements until they are virtually certain.

For liquidated damages, treatment depends on purpose i.e. if LDs compensate the company for additional costs necessary to complete or make the asset operational (e.g., site preparation, installation, or testing costs), they may be capitalised as part of the asset’s cost.

If LDs represent penalties, compensation for delays, or reimbursement of revenue losses unrelated to asset readiness, they should be recognised as income in the Statement of Profit and Loss.

For encashed bank guarantees, recognition depends on the certainty of retention i.e. where invocation is disputed and legal proceedings are ongoing, the encashed amount cannot be treated as income or an asset reduction, since it is not virtually certain that the company will retain it.

Instead, such amounts should be shown as a liability under Current Liabilities until the dispute is resolved. Only when it becomes virtually certain that no refund will be required can the amount be derecognised as a liability and appropriately recognised.

Thus, the accounting for LDs and encashed BGs requires careful evaluation of their purpose and certainty. LDs directly linked to asset readiness may be capitalised, while others should be recognised as income. Encashed BGs, if disputed, must be recorded as liabilities until their retention is virtually certain, ensuring faithful representation under the Ind AS framework.

Read the Story

8. ICAI allows voluntary adoption of Guidance Notes for Non-Corporate Entities and LLPs in FY 2024–25

The Institute of Chartered Accountants of India (ICAI) has eased the transition for members regarding its Guidance Notes on Financial Statements of Non-Corporate Entities and Limited Liability Partnerships, issued in August 2023. Though originally effective from April 1, 2024, compliance will remain voluntary for FY 2024–25, giving entities and professionals time to align systems and adopt the formats gradually.

Importantly, this relaxation does not affect the binding applicability of Accounting Standards or the financial reporting framework, which continue unchanged.

Read the Guidance Note