IDT for CA Final: Important Changes to Consider in 2025

Introduction

The Indirect Tax Laws (IDT) are one of the more engaging and high-scoring subjects in the CA Final syllabus. The ICAI is especially concerned about students' failure to keep up with the most significant changes, which frequently leads to their ignoring the syllabus. These changes include amendments, circulars, notifications, and various laws in customs and GST. Having the appropriate amendments is not only advised but also required for students taking the CA final exams in November or September 2025.
 We will highlight the significant revisions, deletions, and justifications that ICAI has recommended for the CA Final IDT Paper in this post.

 ICAI Instructions on Coverage of Amendments

According to IDT, for the September 2025 attempt (which also applies to November 2025):  

• The only amendments that matter are those that take effect on February 28, 2025.
•  Even if they are mentioned in the Finance Act 2024, amendments that are not put into effect by this date will not be regarded as pertinent.

This implies that you should focus on what the ICAI's statutory update materials currently state is in effect.

 Important GST Changes for CA Final 2025  

 1. Changes to Reverse Charge Mechanism (RCM)

• The sponsorship services provided to corporate entities or firms are now also included in RCM.
• Commercial real estate leasing from an unregistered individual to a registered individual is still subject to the Reverse Charge Mechanism (RCM).  
• These services are covered under Sections 9(3) and 9(4) of the CGST Act.  

2. E-Commerce Operator (ECO) Rules  

• ECOs that are subject to Section 9(5) must pay GST in cash. Additionally, this payment cannot be claimed for any ITC.  
• For these services, reversing ITC is not necessary. This simplification is beneficial to both GST consultants and taxpayers.  

3. Penal Charges by Banks and NBFCs  

• According to the clarification, penalties for late EMI payments are not "consideration" and are not subject to GST charges.  
• This will help the financial services industry reduce litigation and uncertainty related to GST compliance.  

Important Updates for Customs Law  

1. Relevant Provisions  

The Finance (No. 2) Act, 2024, which amends the Customs Act, 1962, and the Customs Tariff Act, 1975, will only apply to those sections that take effect on February 28, 2025.  

2. Amendments Not Applicable  

Since the following clauses were not communicated by the deadline, they cannot be examined:  

• The Customs Tariff Act's Sections 9, 9A, and 9C  
• Section 65 and Section 65A of the Customs Act  

As a waste of time, students are discouraged from thinking about these sections.

What is excluded from the 2025 attempt?  

For the 2025 attempt, the ICAI has removed the following to avoid ambiguity:  

• GST Case Study: Exempt Composition Levy  
• Goods Supply Exemptions  
• Transitional Provisions and Real Estate ITC and the related scenarios  
• The Valuation of the Kerala Flood Cess  
• Specific ITC Regulations on Gold Dore Bars  

Focusing on what is included will help save time and assist in creating a strategic plan for the exam.  

IDT Amendment Study Tips  

• For September/November 2025, use the Statutory Update PDF provided by ICAI.  
• Create a dedicated notes file for every subject, but record changes on a topic basis for easy access.
• Regularly attempt answering case studies plus MCQ amendments for practice.  
• Revise the case laws, concentrating on the applicability date and section numbers.
• Tune in to revision classes given by credible educators who use ICAI materials.  

Final Thoughts  

When used properly, amendments can be a powerful tool for improving a candidate's score on the CA Final IDT exam. Following ICAI guidelines will help you maintain focus. Stay away from the temptation to overstudy unrelated material and instead concentrate on the study guide, statutory updates, and the attempt's RTPs. A well-planned revision of an amendment can result in a significant improvement of 15 to 20 points.
Addressing last-minute changes and additional modifications is understandably overwhelming, and CA Point is here to help with:

• Tailored live sessions to help with amendments and syllabus changes
• Mentors who care and adhere to ICAI guidelines
• Continuous evaluation and MCQ practice sessions, along with summaries, to ensure readiness
• Supplementary notes and mock tests, along with subject-specific guidance for the entire CA Final

At CA Point, we understand the diverse needs of students, both individually and in guided groups, to support them in preparing for the CA Final.