1. New GST Rules Notified — Effective 1 Feb 2026
- The Government of India issued the CGST (Fifth Amendment) Rules, 2025 via Notification No. 20/2025-Central Tax, dated 31 Dec 2025.
- Key changes include:
- Rule 31D: Valuation of certain supplies on the basis of declared Retail Sale Price (RSP) rather than Transaction Value
- Goods covered: specified tobacco products and pan masala, including pan masala (2106 90 20), unmanufactured tobacco (2401), cigars/cigarettes (2402), other manufactured tobacco (2403), and nicotine products for inhalation (2404)
- Calculation of Tax: RSP*Tax Rate/(100+Tax Rate)
- Applicability: Only to the manufacturer of the goods, others are exempted
- Exemption of Rule 86B for Traders: If tax on goods is calculated based on RSP, Rule 86B is exempted for traders for goods on which tax has been paid by supplier on RSP basis.
- If mixed business, segregate the turnover and Rule 86 B applies to non RSP Taxed supplies.
2. Budget 2026 Expectations — MSME Focus
- As India prepares for the Union Budget 2026 (to be presented on 1 Feb 2026), there’s strong anticipation of new support for MSMEs — including tax relief, enhanced credit access, and incentives for growth and technology adoption. Sector leaders are pushing for favourable policies
3. ₹5,000 Crore Equity Boost for MSME Lending
- The Union Cabinet approved a ₹5,000 crore equity infusion into SIDBI (Small Industries Development Bank of India) to strengthen MSME credit access nationwide.
- This capital support aims to significantly expand lending capacity and help more MSMEs get loans, potentially increasing the number of assisted enterprises by millions and generating jobs.
4. NITI Aayog Report on MSME Efficiency
- NITI Aayog released a report recommending convergence of government schemes for MSME efficiency and better support delivery, including financial, marketing, and skill development integration.
- The roadmap suggests improving inter-agency coordination to make existing schemes more effective.
5. Budget 2026 – Income Tax Expectations
- Ahead of the Union Budget 2026 (to be presented on 1 Feb 2026), experts and media are reporting expectations for key income tax changes:
• Possible higher standard deduction (₹1 lakh) and rationalised slabs.
• Focus on fixing current tax structure to benefit middle-class taxpayers. - Exporters are also seeking tax & tariff relief packages to boost competitiveness.
6. Director KYC Compliance Simplified
The MCA has relaxed KYC requirements for company directors, replacing the annual filing obligation with a once-every-three-years filing regime (effective from 31 March 2026) under the Companies Act, 2013.
- Directors will use a simplified KYC form (DIR-3-KYC-Web).
- Updates to contact details must be made within 30 days of change.
- Directors who’ve already complied will next file by 30 June 2028.
This significantly reduces compliance burden for directors and simplifies DIN maintenance.
7. Summary – Key Dates to Watch
| 22‒24 Jan | GSTR-3B (Quarterly) for QRMP taxpayers — Q3 Oct–Dec 2025 |
| 30 Jan | TDS challan cum statement (Forms 26QB, 26QC, 26QD, 26QE) — Dec 2025 |
| 30 Jan | TCS certificates (Form 27D) — Q3 |
| 31 Jan | Quarterly TDS returns (Forms 24Q, 26Q, 27Q) — Q3 |
| 31 Jan | MCA filings: AOC-4, MGT-7 & related ROC forms (FY 2024-25) – no extra fees |