Law Updates

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.

The Ministry of Micro, Small and Medium Enterprises has introduce new recruitment rules for the posts of Junior Accounts Officer in the Micro, Small and Medium Enterprises Development Organisation, effective from the date of publication in the Official Gazette. These rules repeal the 1988 recruiting guidelines. They specify the number of positions, the hierarchy, the level of the salary matrix, and the detailed criteria for recruitment, including age limits, qualifications, and other requirements. Disqualification includes people who have remarried while their partner is still alive, with exemptions under specific personal laws. The Government reserves the power to relax any provision in consultation with the Union Public Service Commission for specific classes or categories. These rules also preserve reservations and concessions for Scheduled Castes, Scheduled Tribes, OBCs, Ex-servicemen and other special categories as may be prescribed by the Government.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has amended ANF-2N for the export of Pharma Grade Sugar. As per the Public Notice dated 22nd July 2025, the 'Shipment Details' and 'Foreign Buyer/Consignee Details' columns in the application form are now optional instead of mandatory. Exporters can mention 'any buyer/any port of discharge' while applying. These details can be updated later once the export order is confirmed, but before the shipment. This move simplifies the export authorization process, offering flexibility to exporters dealing with Pharma Grade Sugar. The amendment is made under the powers of Paragraphs 1.03 and 2.04 of the Foreign Trade Policy 2023.

On 23rd July 2025, the Central Government officially withdrew two quality control orders - Methanol (Quality Control) Order, 2019 and Aniline (Quality Control) Order, 2019. This decision was taken under the Bureau of Indian Standards Act, 2016, after consulting the Bureau of Indian Standards. The withdrawal aims to simplify compliance for industries and promote ease of doing business. The orders were originally notified in August 2019. With this new notification, both earlier orders stand cancelled from the date of publication in the Official Gazette. This move will impact manufacturers, importers, and users of methanol and aniline, as new regulatory requirements may apply.

The Ministry of Mines has issued the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2025, effective from July 21, 2025. These updated mining rules bring several changes to improve mineral regulation in India. Rule 44 removes clause (ia), and Rule 45 includes new minerals like Zirconium, Caesium, and Rubidium for pricing and reporting. The Indian Bureau of Mines will now publish the average sale price of Rubidium based on global data and RBI’s exchange rates. Rule 67 shifts authority from State to Central Government for certain mineral matters and changes references to the “Atomic Minerals Directorate.” Rule 68 clarifies legal wording and gives more control to the Central Government. These mining regulation amendments help align Indian mining laws with global standards and support better resource management. This change enhances transparency and ensures accurate mineral pricing, helping attract more investment in India's mining sector.