Upon receiving the assent of the President, the Finance Act, 2025 (‘FA 2025’)¹  is enacted with effect from 29 March 2025. The effective dates for implementation of the various provisions of FA 2025 pertaining to indirect taxes are summarized below:

• Amendments made effective from 29 March 2025:
  • Amendment in section 18 of the Customs Act, 1962 (‘Customs Act’) providing a definitive time limit of 2 years for finalization of provisional assessment.
  • Insertion of section 18A in Customs Act providing for voluntary revision of Documents (viz., Bills of Entry/Shipping Bills) post clearance.
  • Amendment in sections 27 and 28 of Customs Act providing for commencement of the limitation period in case of refund/demand of customs duty on account of revision/amendment of documents from the date of payment of duty or interest.
  • Retrospective service tax exemption on reinsurance services under the Weather Based Crop Insurance Scheme and Modified National Agricultural Insurance Scheme between 1 April 2011 and 30 June 2017.

• Amendments made effective from 1 April 2025:
  • Replacement of Settlement Commission by Interim Board and consequential changes in Customs Act  and Central Excise Act², 1944³ .
  • Amendment in definition of Input Service Distributor (‘ISD’) under Section 2(61) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’)⁴  to provide for distribution of input tax credit (‘ITC’) by ISD in respect of inter-state supplies on which tax has to be paid under reverse charge mechanism, with corresponding amendment in section 20 of CGST Act pertaining to the manner of distribution of ITC by ISD.

• Amendments to be made effective from a date to be notified:
  •  Amendment to the definition of ‘local authority’ in section 2(69) of CGST Act.
  • Introduction of definition of ‘Unique Identification Marking’ in section 2(116A) of CGST Act.
  • Omission of provisions pertaining to the time of supply of vouchers by amending sections 12 and 13 of CGST Act.
  • Retrospective amendment from 1 July 2017 in Section 17(5)(d) of the CGST Act replacing the phrase ‘plant or machinery’ with ‘plant and machinery’⁵.
  • Amendment in section 34 of CGST Act to provide conditions for allowing taxpayers to reduce output tax liability in case of issuance of credit notes.
  • Amendment in section 38 of CGST Act to insert enabling provisions for introduction of Invoice Management System.
  • Amendment in section 39 of CGST Act relating to filing return in Form GSTR-3B to prescribe applicable conditions and restrictions.
  • Amendment in sections 107 and 112 of the CGST Act to prescribe pre-deposit for filing appeals in cases involving only demand of penalty.
  • Introduction of section 122B and 148A of CGST Act as enabling provisions for implementation of ‘track and trace mechanism’ to ensure that supply of specified goods is effectively monitored and controlled, records are maintained as well as for levy of penalties for its contravention.
  • Retrospective amendment with effect from 1 July 2017 in Schedule III of the CGST Act to include supply of goods warehoused in Special Economic Zones and Free Trade Warehousing Zones⁶ . No refund of tax paid on the above transaction to be granted.

• Amendments to the First Schedule of the Customs Tariff Act, 1975 (‘CT Act’):
  • Effective 2 February 2025: Amendment on applicable Basic Customs Duty (‘BCD’) rate on certain goods falling under Chapters 60 and 85⁷ .
  • Effective 1 May 2025: Amendment to the First Schedule of CT Act by inserting new tariff entries and amending BCD rates on certain tariff items⁸.

¹ Our publications on the amendments proposed by the Finance Bill, 2025 can be accessed by clicking here. Further, the changes proposed by Lok Sabha to the Finance Bill, 2025 can be accessed by clicking here.
² Sections 127A, 127B, 127C, 127D, 127F, 127G and 127H of Customs Act
³  Sections 31, 31A, 32, 32A, 32B, 32C, 32D, 32E, 32F, 32G, 32I, 32J, 32K, 32L, 32M, 32O and 32P of the Central Excise Act, 1944
⁴  Although the amendment to Section 2(61) of the CGST Act would be made effective consequent to the notification issued by the Government, the said amendment would be made with effect from 1 April 2025
⁵  Although the amendment to Section 17(5) of CGST Act would be made effective consequent to the notification issued by the Government, the said amendment would be made with retrospective effect from 1 July 2017
⁶  Although the amendment to schedule III to CGST Act would be made effective consequent to the notification issued by the Government, the said amendment would be made with retrospective effect from 1 July 2017
⁷  As per Second Schedule to FA 2025
⁸  As per Third Schedule to FA 2025