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The Ministry of Finance, Government of India, had notified the Unified Pension Scheme (UPS) for eligible Central Government employees through Notification No. F. No. FX-1/3/2024-PR dated 24 January 2025. As part of this initiative, the Department of Financial Services (DFS) has now underlined a crucial deadline – 30 September 2025 will be the last date for eligible employees and past retirees under the National Pension System (NPS) to exercise their option to move to UPS.

This is a one-time opportunity. Employees who do not exercise their option by the deadline will remain under NPS by default, and will not be able to shift to UPS thereafter.

One-Time, One-Way Switch: UPS back to NPS

Adding further flexibility, DFS has also issued Office Memorandum No. 1/3/2024-PR dated 25 August 2025, which allows a one-time, one-way switch for Central Government employees who have already opted for UPS. Under specific conditions, they can revert to NPS.

Key conditions for switching from UPS to NPS:

1. The switch can be exercised only once and employees cannot revert to UPS again.

2. The option must be given at least one year before superannuation or three months before voluntary retirement, whichever is earlier.

3. The switch facility will not be available in cases of removal, dismissal, compulsory retirement as a penalty, or where disciplinary proceedings are pending/under consideration.

4. Those who do not opt within the stipulated time will continue under UPS by default.

What this means for employees

This move ensures that Central Government employees have adequate flexibility in planning their post-retirement financial security. While the UPS offers a new framework, employees who may later wish to return to the market-linked NPS can now do so – but only once, and within the given conditions.

• Employees under NPS must take a decision before 30 September 2025 if they wish to move to UPS.

• Employees who have already chosen UPS have an added safeguard with the one-way switch to NPS, ensuring they are not permanently locked into one scheme.

???? Action Point for Employees: If you are eligible, do not wait until the last moment. Review your retirement goals, consult with financial advisors if required, and exercise your option well before the deadline.

This is a significant decision that will shape your retirement security – make sure you choose wisely.

The Pension Fund Regulatory and Development Authority (PFRDA) has announced an important update regarding the Unified Pension Scheme (UPS).

The Ministry of Finance, Government of India, had earlier notified the Unified Pension Scheme (UPS) for eligible Central Government employees vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025.

With the deadline to exercise the option to switch to UPS fast approaching — 30th September 2025 — PFRDA has clarified that:

???? In case a subscriber is unable to submit the UPS request online through the CRA system due to technical issues or unavailability of the platform, they will still have the option to submit a physical application form.

???? The duly filled physical form must be submitted to the concerned Nodal Office on or before the due date.

???? These requests will be processed by the Nodal Offices as per the prescribed procedure.

⚠️ Important Note:
The last date for eligible employees and past retirees under NPS to opt for UPS remains 30th September 2025.

This relaxation ensures that no eligible subscriber misses out on the opportunity to switch to UPS just because of online system issues.

The Ministry of Finance’s Department of Financial Services (DFS), in collaboration with the Indian Banks’ Association (IBA), recently organized a high-level meeting on “Empowering MSMEs: Opportunities, Challenges and Way Forward” in Mumbai. The session was chaired by the Secretary, DFS, and saw active participation from senior leaders of SIDBI, Public Sector Banks, major Private Sector Banks, IBA, and MSME industry associations from across the country.

MSMEs – The Backbone of India’s Economy

In his keynote address, the Secretary, DFS, highlighted the pivotal role of Micro, Small and Medium Enterprises (MSMEs) in India’s economic growth. MSMEs account for nearly 30% of India’s GDP and contribute to over 45% of the nation’s exports. More importantly, they drive grassroots economic transformation by promoting entrepreneurship, generating employment, and enabling inclusive growth.

“MSMEs are the backbone of the Indian and global economy. They reflect India’s strong entrepreneurial spirit, spanning from traditional industries to modern technology sectors. Empowering them with better access to finance, technology, and markets is key to building a self-reliant and globally competitive India,” the Secretary said.

He also underlined the importance of the sector in achieving the vision of Viksit Bharat 2047, where MSMEs are expected to play a central role in job creation, innovation, and sustainable growth.

Key Areas of Discussion

The deliberations during the meeting centered around both immediate action points and long-term strategies to strengthen MSMEs. Some of the critical themes discussed included:

• Shift towards digital loans – building faster, simpler, and more transparent lending processes.

• Cash flow-based underwriting – moving beyond collateral-heavy models to support genuine business growth.

• Addressing delayed payments – ensuring timely cash flows to safeguard small businesses.

• Improving MSME awareness and data quality – enabling informed decisions and effective policy-making.

• Enhancing access to finance – designing innovative financial products and schemes.

A presentation on Government of India initiatives for MSMEs was also shared, reinforcing ongoing policy efforts to support the sector.

The Road Ahead

The meeting concluded with a shared vision – to create a robust, resilient, and globally competitive MSME sector. By aligning efforts of government bodies, industry stakeholders, and financial institutions, India can unlock new opportunities for small businesses and ensure their central role in shaping the country’s growth story.

As India looks towards Viksit Bharat 2047, strengthening MSMEs will not just be an economic priority, but also a social one—fueling innovation, fostering entrepreneurship, and creating millions of livelihoods across the nation.

The 56th GST Council meeting in New Delhi has brought in major changes to GST rates, exemptions, and rationalisation across goods and services. These changes are aimed at simplifying the structure, reducing disputes, and balancing the needs of both consumers and manufacturers.

Here’s a simple FAQ guide to help you understand what’s changing and how it impacts you.

1. When will the new GST rates come into effect?

The revised GST rates on most goods and services will be effective from 22nd September, 2025.

• For goods like cigarettes, zarda, unmanufactured tobacco, and beedi, the existing rates continue for now. The new rates for these will apply only after compensation cess-related loans are fully repaid.

2. Has the registration threshold under GST changed?

No. The registration threshold under CGST Act, 2017 remains unchanged.

3. Where will the revised rates be notified?

All rate changes will be published through notifications on the CBIC website.

4. What if I supply goods/services before the new rates but raise invoices later?

As per Section 14 of the CGST Act, 2017:

• If payment is received after the rate change, tax liability arises on the earlier of invoice date or payment date.

• If payment was received before the rate change, liability will be on payment date.

5. What happens to ITC (Input Tax Credit) for purchases made before the change?

You can continue to claim ITC on purchases at the rates applicable when you bought them, as long as the invoices were compliant.

6. Will e-way bills need to be cancelled after rate changes?

No. E-way bills already generated remain valid. No need to cancel and regenerate.

7. Key GST rate changes at a glance

• UHT Milk & Plant-based Milk – Now exempt / reduced to 5%.

• Indian breads (paratha, roti, etc.) – Now fully exempt.

• Agricultural machinery & equipment – Reduced from 12% to 5%.

• Medicines & Medical Devices – Standardised at 5% to lower healthcare costs.

• Vehicles

  • Small cars: Reduced to 18%

  • Mid-size/large cars & SUVs: 40% (no cess, but higher rate)

  • 3-wheelers, buses, trucks: 18%

  • Motorcycles up to 350cc: 18% (above 350cc: 40%)

• Bicycles & parts – Reduced to 5%.

• Soaps, shampoos, face powders – Daily use items reduced to 5%.

• Toothpaste, toothbrush, dental floss – 5% for dental hygiene goods.

• Renewable energy equipment – Reduced to 5%.

• Spectacles for vision correction – 5% (was 12–18%).

• Batteries – Uniform 18%.

• Air Conditioners, Dishwashers, TVs, Monitors – Now 18%.

• Beauty, salon, fitness services – Reduced to 5% (without ITC).

• Betting, gambling, casinos, online gaming, IPL tickets – Taxed at 40%.

8. Why have some goods not been fully exempted?

In many cases (e.g., medicines, farm equipment), full exemption would block ITC for manufacturers, increasing production costs and leading to higher consumer prices. Instead, reduced rates ensure relief while keeping the input credit chain intact.

9. Transportation Services under GST

• Passenger transport (buses, cabs, etc.) – 5% without ITC or optional 18% with ITC.

• Goods transport by GTA – 5% without ITC or optional 18% with ITC.

• Multimodal transport – 5% (if no air transport) else 18%.

• Container Train Operators – Option of 5% without ITC or 18% with ITC.

10. Big Picture – Why these changes?

The Council has tried to:

• Simplify GST rates to avoid misclassification disputes.

• Promote domestic manufacturing by avoiding complete exemptions.

• Support consumers by reducing rates on essential/daily-use items.

• Encourage green energy and healthcare with concessional rates.

• Replace compensation cess with special GST rates on luxury and sin goods.

???? These changes are a step towards GST 2.0, with fewer rates, simpler compliance, and a balance between government revenue and consumer relief.