Law Updates

The Ministry of Health and Family Welfare has notified the Cosmetics (Amendment) Rules, 2025, under the Drugs and Cosmetics Act, 1940. These rules amend several provisions of the Cosmetics Rules, 2020. Key changes include definitions for "use before" and "date of expiry," clarifying that products should be used before the first day of the month mentioned, and expire on the last day. The term "controlling officer" is replaced with "Controlling Authority" throughout the rules.
Rule 7 now designates the Government Analyst under the Act as the analyst for cosmetics. The Central Drugs Laboratory will function as the Central Cosmetics Laboratory for testing, appeals, and other duties. Records for batches and raw materials must be kept for 3 years or 6 months after expiry, except for soap manufacturers, who follow Licensing Authority-approved procedures. Rule 31A introduces cancellation or suspension of licenses for violations, with appeal provisions to the State Government.
Labelling norms for export have been updated to meet destination country laws. "Licence" is replaced by "approval" in several rules, with changes reflecting regulatory clarity and alignment. Courier provisions have been removed. These amendments aim to strengthen compliance, transparency, and governance in the cosmetic manufacturing sector.

The Directorate General of Foreign Trade (DGFT) has amended para 10.16 of the Handbook of Procedures (HBP) 2023 to widen the scope of the General Authorization for Export of Chemicals (GAEC). Under the revised guidelines, exporters of SCOMET items in Categories 1C, 1D, 1E, 3D001, and 3D004 (excluding software and technology) are required to submit an online application to ANF-10A.

One significant update now comprises the export or re-export of chemicals listed in Schedule 10(N) to the specific country mentioned therein. Moreover, under a new clause (10.16(A) (I) (b)), exporters intending to ship to a non-listed country need to specify those destinations for consideration. If available, exporters can also submit an Authorized Economic Operator (AEO) Certificate or a Status Holder Certificate.

This amendment, effective immediately, facilitates the controlled and transparent export of sensitive chemical items while growing eligible destinations under the GAEC framework.

The Ministry of Textiles issued the Medical Textiles (Quality Control) Second Amendment Order, 2025, to update rules for medical textiles. This new order changes the 2024 Medical Textiles (Quality Control) Order. It allows manufacturers certified by the Bureau of Indian Standards (BIS) or those applying for certification to sell old stock without the Standards Mark until December 31, 2025. This applies only if the manufacturers declare the old stock was made or imported before the specified date in Schedule A of the original order. The amendment ensures proper quality control while giving time to clear old inventory. The order aims to protect public health by enforcing quality standards in medical textiles. It also supports manufacturers by providing a clear deadline to meet new quality mark rules. This step helps improve safety in medical textiles and promotes compliance with BIS certification requirements in India. The order took effect from the date of its publication that is 30th July 2025.

The Ministry of Chemicals and Fertilizers has issued the H Acid (Quality Control) Second Amendment Order, 2025. This notification, published on 30th July 2025, updates the earlier H Acid (Quality Control) Order, 2024. The new rule states that the order will now come into effect from 13th May 2026. This amendment ensures better quality control of H Acid, a key chemical in dye and pigment production. The change helps improve industrial chemical standards and safety. The update follows the Bureau of Indian Standards Act, 2016, promoting public interest and chemical industry compliance across India. H Acid regulation now becomes more effective.

The Central Government has implemented Hand Tools (Quality Control) Order, 2025 to replace the 2024 version. Effective from 1 October 2025, the order makes it mandatory that hand tools must carry a standard mark under a license from the Bureau of Indian Standards (BIS). Small and micro enterprises must comply on the basis of specific deadlines. Exemptions are granted for goods manufactured for export and small quantities (up to 200) imported for research and development. These imports may not be sold commercially and must be disposed of as scrap with annual record keeping. The Bureau of Indian Standards (BIS) will supervise certification and enforcement, with applicable fines for non-compliance.

The Ministry of Finance has issued the Income-tax (Twentieth Amendment) Rules, 2025 to amend the Income-tax Rules, 1962. This change updates rule 21AK under the Income-tax Act, 1961. The amendment adds over-the-counter derivatives along with offshore derivative instruments. It also includes Foreign Portfolio Investors (FPIs) as units of the International Financial Services Centre (IFSC). The term “Foreign Portfolio Investor” is now clearly defined as per the SEBI (FPI) Regulations, 2019. These updates aim to improve clarity and expand coverage of the tax rules for financial entities in IFSCs. The CBDT notification ensures the rules are effective from the date of publication in the Official Gazette. This amendment supports India’s goal to streamline taxation for global investors operating through IFSCs.