1.Pre-Budget Signals: More Relief Likely (Budget 2026-27)
- Stakeholders from the MSME sector recently met policy-makers ahead of Budget 2026-27, asking for easier access to credit and lower interest rates for small and medium businesses.
- There is growing demand for simplified tax processes and compliance rules to reduce burden and encourage smoother operations for MSMEs.
- The government is being urged to back innovation, clean energy, and infrastructure upgrades, which could open new opportunities for MSMEs in manufacturing, clean-tech and export sectors.
2.Labour Law Reforms: What’s New?
- India has implemented four new Labour Codes, replacing 29 older laws — the biggest labour reform in decades.
- Full & Final settlement now must be completed within 2 working days after an employee exits.
- Basic salary must be 50% or more of CTC, increasing PF & gratuity contributions.
- Aim: Simplified labour compliance + national wage protection across sectors.
- Employee unions warn of reduced job security due to eased layoff rules.
3.Big GST Shockwave — Recent Court Ruling Update
- Jammu & Kashmir and Ladakh High Court have ruled that trade with Pakistan‑Occupied Kashmir (PoK) is NOT “foreign trade”, but rather “intra-state trade” under Indian law.
- As a result, supplies between J&K and PoK are liable to Central Goods and Services Tax (CGST) + State Goods and Services Tax (SGST) — NOT Integrated Goods and Services Tax (IGST).
- The decision reinforces the constitutional and legal position that PoK is part of India, even for fiscal and commercial laws.
- For traders or businesses dealing in cross-LoC trade (or historical barter trade routes), this judgment signals possible retrospective GST liability along with compliance implications under GST law.
4.Are You a Small Company or a Big Company?
(As per Companies Act, 2013)
There is no definition of a Big Company under the Act — only the term Small Company is defined. Companies falling under this category enjoy several compliance relaxations.
Compliance Benefits for Small Companies
| Particulars | Small Company | Other Companies |
| Board Meetings | Minimum 2 per year, with a gap of not less than 90 days | Minimum 4 per year, gap not more than 120 days |
| CARO (Audit Report Requirements) | ❌ Not Applicable | ✔ Applicable |
| CS Certification in Annual Return | ❌ Not Required | ✔ Mandatory in Form MGT-7 |
| Annual Return Filing | Form MGT-7A (Simplified) | Form MGT-7 |
| Rotation of Auditors | ❌ Not Applicable | ✔ Mandatory |
| Dematerialization of Shares | ❌ Not Applicable | ✔ Applicable |
| Penalties under Section 446B | ✔ Lesser Penalty Benefit | ❌ No Concession |
Revised Definition of Small Company
| Criteria | Up to 14 Sept 2022 | From 1st Dec 2025 |
| Turnover ≤ | ₹40Crores | ₹ 100 Crores |
| Paid-up Capital ≤ | ₹4 Crores | ₹ 10 Crores |
Impact
This is a welcome move, significantly reducing compliance burden for thousands of Private Limited Companies across India.
5.GST Compliance / Due Dates (December 2025)
| Date | What’s due / who must file |
| 10 December 2025 | Forms GSTR‑7 (TDS deductors) & GSTR‑8 (e-commerce operators) for November 2025. |
| 11 December 2025 | Form GSTR‑1 (monthly outward supplies) for November 2025 — for regular/ monthly-filing taxpayers. |
| 13 December 2025 | Invoice-Furnishing (IFF) / optional forms depending on category (e.g. QRMP, non-resident taxpayers). |
| 20 December 2025 | Summary return GSTR‑3B for November 2025. Also monthly PMT-06 payment under QRMP scheme (if applicable). |