During the week of 6th–12th April 2026, multiple key notifications, circulars, and judicial rulings were issued across tax, regulatory, and financial domains. CBDT issued corrigenda for ITR Forms 1 to 7 and ITR-U to rectify structural, computational, and typographical errors, ensuring accuracy in tax reporting. The Supreme Court delivered significant rulings, including non-applicability of TDS on reinsurance payments, non-taxability of online platform income due to failure of the “make available” test, and no TCS on illegal mining compounding fees. Under GST, several rulings clarified ITC eligibility, classification issues, exemptions, and taxability of employee recoveries and services. Central Excise duties on diesel and ATF exports were increased substantially. DGFT introduced export policy changes, compliance requirements, and extended deadlines. SEBI and MCA proposed compliance relaxations and procedural simplifications. IBC amendments strengthened insolvency processes and creditor rights. RBI issued multiple draft directions and reforms focusing on financial stability, digital payments, and regulatory simplification.
Notifications & Circulars issued during week (6th – 12th Apr 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Income tax return Form 1 and 4 (ITR-1 & ITR-4) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 45/2026 dated 30th March 2026. In ITR-1, Schedule-IT has been substituted to provide a structured format for reporting advance tax and self-assessment tax payments, including fields such as BSR code, date of deposit, challan serial number, and tax paid. In ITR-4, amendments have been made in Part B under ‘Gross Total Income’, specifically within the salary schedule, where sub-row numbering has been corrected and a typographical error has been rectified.
(Link: Income Tax Notification 57/2026 Dated 10/04/2026)
Income tax return Form 2 (ITR-2) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 46/2026 dated 30th March 2026. The key corrections include revising figure references in Schedule CG, correcting marginal headings, omitting redundant columns in Schedules 112A and 115AD, and rectifying typographical errors in Schedule OS and Schedule CFL.
(Link: Income Tax Notification 58/2026 Dated 10/04/2026)
Income tax return Form 3 (ITR-3) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 47/2026 dated 30th March 2026. The corrections relate to Schedule CG (Capital Gains) and Schedule OS (Other Sources). In Schedule CG, Part B, a formatting inconsistency in row 9, sub-row a(iii), has been rectified by replacing ‘i. Total (ic + ii)’ with ‘Total (ic + ii)’ to ensure clarity.
(Link: Income Tax Notification 59/2026 Dated 10/04/2026)
Income tax return Form 5 (ITR-5) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 48/2026 dated 30th March 2026. In Schedule CG, row A8 has been amended to correctly reflect the computation formula by replacing ‘(A8a A8b + A8c)’ with ‘(A8a + A8b + A8c)’, thereby ensuring mathematical clarity and accurate aggregation of values. In Schedule UD, incorrect cross-references under columns (4) and (5) have been corrected by substituting ‘(3xvi of BFLA)’ and ‘(4xvi of BFLA)’ with ‘(3xv of BFLA)’ and ‘(4xv of BFLA)’.
(Link: Income Tax Notification 60/2026 Dated 10/04/2026)
Income tax return Form 6 (ITR-6) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 49/2026 dated 30th March 2026. The corrections include substituting incorrect words, figures, and references across sections such as Balance Sheet (Part A-BS), Profit & Loss (Part A-P&L), Schedule BP, Schedule CG, Schedule 112A, Schedule 115AD, Schedule UD, and Schedule MATC.
(Link: Income Tax Notification 61/2026 Dated 10/04/2026)
Income tax return Form 7 (ITR-7) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 50/2026 dated 30th March 2026. The corrections relates to Schedule I, Schedule CG, Schedule OS, Schedule CYLA, and Part B-TI. The key changes include interchanging greyed and blank cells for specific assessment years, deletion and omission of certain rows and sub rows, insertion of a new row relating to pass through income or loss under short term capital gains, and correction of references to schedule totals.
(Link: Income Tax Notification 62/2026 Dated 10/04/2026)
Income tax return Form U (ITR-U) Notification Corrigendum: CBDT has issued a corrigendum to rectify errors in ITR forms notified vide notification 52/2026 dated 30th March 2026. The correction relates to formatting issue in Part A (General Information), ensuring that the phrase ‘Wrong heads of income chosen’ is presented as a separate line following ‘Loss not reported correctly (in case of reduction of loss)’.
(Link: Income Tax Notification 63/2026 Dated 10/04/2026)
SC, No TDS on Reinsurance Payments as Brokers not Permanent Establishment: Case of PCIT vs Cholamandalam MS General Insurance Company Ltd, SC Judgement Dated 6th April 2026. The apex court confirms that reinsurance premiums paid to non-resident reinsurers are not taxable in India (no TDS), foreign brokers do not constitute a Permanent Establishment (PE), and insurance companies are not liable for Minimum Alternate Tax (MAT) under Section 115JB.
SC Upholds Non-Taxability of Online Platform Income due to Failure of ‘Make Available’ Test: Case of CIT (International Taxation) vs Coursera Inc, SC Judgement Dated 1st April 2026. The apex court held that income earned by the US based Coursera from its online learning platform is not taxable as Fees for Technical Services (FTS/FIS) in India. The court confirmed that respondent services failed the ‘make available’ test under the India-USA Double Taxation Avoidance Agreement (DTAA).
SC, No TCS on Compounding Fees as Illegal Mining lacks Legal Contract or Licence: Case of DCIT (TDS) vs District Mining Officer, SC Judgement Dated 6th April 2026. The apex court affirmed HC ruling that Tax Collected at Source (TCS) under Section 206C(1C), is not applicable on compounding fees collected from illegal mining activities.
HC Seeks CBDT clarification on Tax on Partner Remuneration: Case of Rajeev Sawhney vs Assessment Unit, HC Delhi Judgement Dated 1st April 2026. The petitioner contended that the partnership firm had already paid tax on these amounts, and therefore, taxing them again in the hands of the partner was not justified. It was argued that the Assessing Officer relied on Section 10(2A) Explanation and Section 28(v) of the Income Tax Act, 1961 without considering the proviso and its implications. The court directed the Central Board of Direct Taxes (CBDT) to examine the issue and issue an appropriate clarification.
B. GST
GSTN, Advisory on Pre-deposit Percentage in the GST Portal: While filing an appeal in Form APL-01 on the GST portal, the pre-deposit percentage is auto-populated as 10% in accordance with Section 107(6) of the CGST Act, and was previously non-editable. It has now made the pre-deposit field editable at the time of filing the appeal, so as to allows taxpayers to modify the pre-deposit percentage as applicable to their specific case and calculate and pay the required amount accordingly.
(Link: GSTN Advisory Dated 10/04/2026)
HC, Contractor entitled to GST Rate Increase refund due to Statutory Price Adjustment Clause: Case of NG Gadhiya vs State of Rajasthan, HC Rajasthan Judgement Dated 25th March 2026. HC directed refund of an additional 6% GST to a contractor, deeming the state corporation denial of this benefit ‘arbitrary and discriminatory’. The contractors are entitled to reimbursement for increased tax liability arising from contract amendments or rate changes.
AAAR, Geomembranes are Textile Goods Under Chapter 59: Case of Deputy Commissioner Central GST vs Shree Ambica Geotex Pvt Ltd, AAAR Gujarat Ruling Dated 2nd April 2026. AAAR held that the geomembranes manufactured by the respondent are correctly classifiable under HSN 5911 as textile products used for technical purposes.
AAAR, ITC Denied on Leasehold Rights as Linked to Construction of Immovable Property: Case of Inox Air Products Pvt Ltd, AAAR Tamil Nadu Ruling Dated 18th March 2026. AAAR upheld the denial of ITC on GST paid for the transfer of leasehold rights, concluding that the transaction was linked to construction of an immovable property on the appellant own account and thus fell within the blocked credit provisions.
AAR, ITC Allowed as Machinery Foundation qualifies as Plant & Machinery: Case of Cadila Pharmaceuticals Limited, AAR Gujarat Ruling Dated 1st April 2026. AAR ruled that the applicant is eligible to avail ITC on input services used for construction of such foundation and structural support within the factory premises, as they are used for plant and machinery involved in manufacturing activities.
AAR, ITC Allowed on Foundation & structural support work for Plant & Machinery: Case of CPL Pharmaceuticals Private Limited, AAR Gujarat Ruling Dated 1st April 2026. AAR ruled that the applicant is eligible to avail ITC on input services used for construction of foundation and structural support for plant and machinery used in manufacturing.
AAR, No GST on NSDC Digital Marketing Courses falling under Skill Development Scheme: Case of ASDM Institute Private Limited, AAR Gujarat Ruling Dated 1st April 2026. The applicant is engaged in providing digital marketing training courses as part of the Government’s Skill India initiative. AAR ruled that the applicant is eligible for GST exemption on its training services, subject to the treatment of the intervening period in accordance with the circular.
AAR, GST applicable on Capital Contribution of Leasehold Property due to Supply of Service: Case of Aryapride Hotel and convention Private Limited, AAR Odisha Ruling Dated 18th March 2026. AAR held that the contribution of developed leasehold land and constructed structure to the LLP constitutes a taxable supply of service and is not covered under the exclusion for sale of immovable property.
AAR, Biodiesel Blend classification due to Petroleum Content Threshold Rule: Case of MII Energy Transition Pvt Ltd, AAR Karnataka Ruling Dated 16th March 2026. AAR held that B20 (20% biodiesel, 80% HSD) is classified under tariff item 27102020 as a diesel fuel blend (B6 to B20). B30 (30% biodiesel, 70% HSD) is classified under sub-heading 271020 but under the residual tariff item 27102090 due to absence of a specific entry. For blends B40, B50, B60, and B70, where petroleum content is below 70%, classification is held under Heading 3826, specifically tariff item 38260000.
AAR, GST Exemption allowed on Pure Labour Services for Single Residential Units: Case of House Construct Infra (Krishnappa Gangadhar), AAR Karnataka Ruling Dated 16th March 2026. AAR held that the services provided by the applicant satisfied all the conditions prescribed under entry No. 11 of notification 12/2017. Accordingly, such services were held to be exempt from GST, subject to the condition that they continue to qualify as pure labour contracts for original works relating to single standalone residential units and are not part of any residential complex.
AAR, GST Payable on Emergency Training Courses as not Charitable Activities: Case of Jeeva Raksha Trust, AAR Karnataka Ruling Dated 16th March 2026. AAR ruled that activities carried out b the applicant are classifiable under ‘Commercial Training and Coaching Services’, and are liable to GST at rate of 18%.
AAR, GST Exemption allowed on Exam Paper Printing as it Relates to Conduct of Examination: Case of Codeword Process and Printers, AAR Karnataka Ruling Dated 16th March 2026. AAR ruled that the printing of examination question papers supplied to universities is exempt from GST, as it constitutes a service relating to the conduct of examinations by an educational institution.
AAR, Water Charges Taxable as part of RWA Services due to Composite Supply: Case of Prestige North West Country Owners Association, AAR Karnataka Ruling Dated 16th March 2026. AAR held that the supply of water by the association is part of the services rendered by the association. Such services are taxable under SAC 999598 at the rate of 18% GST, subject to the threshold conditions.
AAR, GST not applicable on Bank Rebates as No Supply Involved: Case of John Distilleries Pvt Ltd, AAR Karnataka Ruling Dated 16th March 2026. AAR held that the rebates arisen from the corporate cars arrangement with the bank are merely transactions in money. Sch rebates represent a monetary adjustment by the bank based on corporate card usage and do not involve any supply of goods or services. Therefore, such rebates are not liable to GST.
AAR, GST on Pooja Oil fixed at 5% due to classification as Inedible Vegetable Oil Mixture: Case of Sapna Hitech private Limited, AAR Maharashtra Ruling Dated 27th February 2026. AAR held that ‘Pooja Oil’, an inedible mixture of various vegetable oils, is classified under Chapter Heading 1518 of the GST tariff. It is covered under entry number 96 of Schedule I of tax rate notification, attracting GST @ 5%.
AAR, GST on Canteen charges as salary deduction Qualifies as Consideration: Case of Carraro India Pvt Ltd, AAR Maharashtra Ruling Dated 27th February 2026. AAR held ruled that GST applies to the nominal amounts deducted from employee salaries for canteen services. It held that such deductions qualify as consideration for services, rendering them subject to GST.
AAR, Employee Facility recoveries taxable, Notice Pay not taxable Under GST: Case of Sigma Electric Manufacturing Corporation Pvt Ltd, AAR Maharashtra Ruling Dated 27th February 2026. AAR ruled that recoveries made from employees for canteen and transport facilities provided by the company are taxable under GST. It also ruled that notice pay recovered from an employee who leaves without serving the full notice period is not subject to GST.
AAR, Printing treated as Service when Content Not Owned: Case of Maharashtra State Bureau of Textbook Production & Curriculum Research, AAR Maharashtra Ruling Dated 27th February 2026. AAR ruled that since the content is not owned by the applicant and is supplied by the customer, the supply of such printed books would amount to supply of printing services and chargeable to GST @ 18%.
AAR, Crushing & Sizing of Limestone not Manufacture as no new Product Emerges: Case of Bisra Stone Lime Company Limited, AAR Odisha Ruling Dated 30th January 2026. AAR held that the processes of crushing, screening, and sizing do not result in manufacture, as there is no emergence of a new product with distinct name, character, and use. The activity remains a service in the nature of job work.
C. Central Excise
Road and Infrastructure Cess (RIC) on Diesel Exports increased to Rs 31.5 per Litre: The notification amends earlier notification 11/2026 dated 26th March 2026 relating to Road and Infrastructure Cess on exports of high speed diesel oil outside India. The entry in relevant column has been substituted with ‘Rs. 31.5 per litre’ (earlier Rs 9.5 per litre).
(Link: Central Excise Notification 18/2026 (T) Dated 11/04/2026)
Special Additional Excise Duty (SAED) on ATF Exports increased to Rs 42 per Litre: The notification amends earlier notification 08/2026 dated 26th March 2026 relating to Special Additional Excise Duty on exports of Aviation Turbine Fuel (ATF) outside India. The entry in relevant column has been substituted with ‘Rs. 42 per litre’ (earlier Rs 29.5 per litre).
(Link: Central Excise Notification 17/2026 (T) Dated 11/04/2026)
Special Additional Excise Duty (SAED) on Diesel Exports increased to Rs 24 per Litre: The notification amends earlier notification 06/2026 dated 26th March 2026 relating to Special Additional Excise Duty on exports of high speed diesel oil outside India. The entry in relevant column has been substituted with ‘Rs. 24 per litre’ (earlier Rs 12 per litre).
(Link: Central Excise Notification 16/2026 (T) Dated 11/04/2026)
Road and Infrastructure Cess (RIC) on Diesel increased to Rs 36 per Litre: The notification amends the Sixth Schedule to the Finance Act 2018, for revising the tariff rate of Road and Infrastructure Cess applicable to high speed diesel oil. The entry in relevant column has been substituted with ‘Rs. 36 per litre’
(Link: Central Excise Notification 15/2026 (T) Dated 11/04/2026)
Special Additional Excise Duty (SAED) on Diesel increased to Rs 24 per Litre: The notification amends the Eighth Schedule to the Finance Act 2002, for revising the tariff rate of Special Additional Excise Duty on high speed diesel oil. The entry in relevant column has been substituted with ‘Rs. 24 per litre’.
(Link: Central Excise Notification 14/2026 (T) Dated 11/04/2026)
SC, Excise Duty exemption notifications based on “Intended Use” must be Liberally Construed in Assessee Favour: Case of Rashtriya Chemical & Fertilizers Ltd vs Commissioner of Central Excise and Service Tax, SC Judgement Dated 24th March 2026. The apex court that excise duty exemption on Naphtha, intended for fertilizer production, applies even if part of it is indirectly used for other activities within an integrated plant.
D. Custom Duty
Panoli Port in Bharuch, Gujarat notified for Import-Export Handling: The notification updates the list of notified customs areas, by inserting a new entry for Panoli in Bharuch district. It is authorized for the unloading of imported goods and the loading of export goods, including any specified class of such goods.
(Link: Customs Notification 36/2026 (NT) Dated 06/04/2026)
Producer Name updated in Anti-Dumping Duty (ADD) notification on DGTR Advice: The notification amends earlier notification 15/2023 dated 22nd December 2023 to change the name of producer ‘Bystronic (Shenzhen) Laser Technology Co. Ltd’ to ‘DNE LASER (Guangdong) Co. Ltd’.
(Link: Customs Notification 04/2026 (ADD) Dated 08/04/2026)
RoDTEP and RoSCTL Benefits allowed on Full FOB Value Subject to 12.5 % Limit: The circular clarifies the treatment of remission or rebate under RoDTEP and RoSCTL schemes in cases of short realisation of export proceeds. It was stated that, similar to duty drawback provisions, benefits under these schemes can be granted on the full Free on Board (FOB) value without deducting agency commission and foreign bank charges, provided such deductions do not exceed 12.5% of the FOB value.
(Link: Customs Circular 20/2026 Dated 10/04/2026)
LEO Cancellation allowed due to Strait of Hormuz disruption for SEZ Export Cargo: The circular simplifies procedure for handling export cargo originating from Special Economic Zones (SEZs) affected by disruption in maritime routes due to closure of the Strait of Hormuz. It clarified that exporters may request cancellation of Let Export Order (LEO) or Shipping Bill at the originating SEZ, after which customs at the gateway port may permit movement of cargo for return or re-routing without requiring it to be sent back to the SEZ.
(Link: Customs Circular 19/2026 Dated 10/04/2026)
E. Directorate General of Foreign Trade (DGFT)
Extension of validity of Minimum Export Price (MEP) on export of Natural Honey: The export policy for natural honey (ITC HS Code 04090000) continues to remain “Free,” but subject to an MEP of USD 1400 per metric ton (FOB). Earlier, this condition of MEP was applicable until 31st March 2026, it has now been extended until 31st December 2026.
(Link: DGFT Notification 09/2026 Dated 10/04/2026)
Export Policy for Feathers & Skins revised in Line with EU/UK Norms: While the export of feathers, skins, and related products remains ‘Free’, a new Policy Condition has been introduced, imposing additional compliance requirements aligned with EU/UK regulations. Exporters must obtain a consignment wise Veterinary or Shipment Clearance Certificate issued by CAPEXIL, detailing exporter and plant information.
(Link: DGFT Notification 08/2026 Dated 10/04/2026)
EIC Inspection Requirement for Rice Exports to Select European Countries: The notification mandates that exports of both Basmati and Non-Basmati rice to EU Member States and specified European countries, namely the United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland must be accompanied by a Certificate of Inspection issued by the Export Inspection Council (EIC) or Export Inspection Agency (EIA). However, exports to other European countries are exempt from this requirement.
(Link: DGFT Notification 07/2026 Dated 10/04/2026)
Description of HS Code 73181500 aligned with description under Customs Tariff: The DGFT has amended the description of HS Code 73181500 in Appendix-4R and Appendix-4RE of the RoDTEP Schedule under the FTP. The earlier description, limited to ‘screw for use in manufacture of cellular mobile phone’, has been revised to a broader classification, i.e., ‘other screws and bolts, whether or not with their nuts or washers’.
(Link: DGFT Notification 06/2026 Dated 09/04/2026)
Certificates of Origin (CoO) Issuance mandated with Invoice matching for Verification: The amendment clarifies that Certificates of Origin (CoO) for exports from India can only be issued by authorized agencies, following prescribed procedures. Additionally, exporters holding Importer Exporter Code (IEC) must use identical invoice numbers in both CoOs and Shipping Bills to enable automated verification. The Approved Exporter Scheme continues as an optional system, allowing eligible manufacturer exporters with status holder recognition to self-certify origin of goods.
(Link: DGFT Notification 05/2026 Dated 07/04/2026)
Export Policy ‘Restricted’ for Wood Pellet & Briquette: The DGFT has amended the export policy, reclassified wood pellets from ‘Prohibited’ to ‘Restricted’ and wood briquettes from ‘Free’ to ‘Restricted’. The exports of both items are now allowed only under a Restricted Export Authorization, subject to prescribed conditions.
(Link: DGFT Notification 04/2026 Dated 06/04/2026)
TRQ Application deadline extended for India Mauritius CECPA & India Nepal Treaty: The DGFT has extended the deadline for submission of online applications for Tariff Rate Quota (TRQ) allocations for FY 2026–27, till 25th April 2026. The extension applies to specified goods under India–Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) and India–Nepal Treaty, as listed in Appendix-2A of FTP.
(Link: DGFT Public Notice 03/2026 Dated 10/04/2026)
Applications invited for Calcined & Raw Petroleum Coke Import Quotas: The DGFT has notified the procedure for allocation of import quantities of Calcined Petroleum Coke (CPC) for the aluminium industry and Raw Petroleum Coke (RPC) for CPC manufacturing units for FY 2026-27. The allocation follows directions of the Commission for Air Quality Management (CAQM), prescribing annual limits of 0.8 million MT for CPC and 1.9 million MT for RPC. Applications must be submitted online by 20th April 2026 and will be evaluated case-by-case by the Exim Facilitation Committee. The authorisations will remain valid till 31st March 2027.
(Link: DGFT Public Notice 02/2026 Dated 10/04/2026)
Certificates of Origin (CoO) issuance only through Designated Electronic Platform by Authorised Agencies: The amendment mandates that all authorised agencies must accept applications and issue Certificates of Origin exclusively through the designated electronic platform specified by DGFT. It specifies that the list of authorised agencies for issuing CoOs will be as notified in Appendices 2B, 2C, 2D, and 2E.
(Link: DGFT Public Notice 01/2026 Dated 07/04/2026)
F. Securities and Exchange Board of India (SEBI)
Non-Transferable Tag introduced for Pledged Shares: The circular streamline the lock-in mechanism for pledged shares under the SEBI ICDR Regulations. It allows specified securities, where lock-in cannot be created in the traditional manner, to be marked as ‘non-transferable’ by depositories during the lock-in period.
(Link: SEBI Circular Dated 08/04/2026)
Observation Letter Validity for Public Issues extended due to Geopolitical Tensions: The circular grants one time relaxation regarding the validity of its observation letters under the SEBI ICDR Regulations. Normally, public issues must be opened within 12 or 18 months from the date of such observations. Considering geopolitical challenges, the validity of observation letters expiring between 1st April 2026 and 30th September 2026, has been extended up to 30th September 2026.
(Link: SEBI Circular Dated 07/04/2026)
SEBI Grants Minimum Public Shareholding (MPS) compliance relief due to Market Volatility Impact: The circular grants a one-time relaxation from penal provisions under the SEBI Master Circular, relating to non-compliance with Minimum Public Shareholding (MPS) requirements. SEBI directed recognised stock exchanges and depositories not to initiate or continue penal actions, such as fines or freezing of promoter shareholding, for listed entities whose compliance deadlines fall between 1st April 2026 and 30th September 2026.
(Link: SEBI Circular Dated 07/04/2026)
G. Ministry of Corporate Affairs (MCA)
Draft Amendments to Company Incorporation Rules to reduce Compliance Burden: The key proposals include consolidation of multiple forms into simplified e-forms such as ‘E-CHNG’ and ‘E- CON’, rationalisation of KYC and documentation requirements, and removal of redundant provisions like affidavits for OPC conversion and certain director- related filings. The draft also proposes simplification of name reservation rules, enhanced clarity on trademark related objections, and the ability to withdraw reserved names. The draft also proposes flexible physical verification of registered offices, increased limit for allotment of Director Identification Numbers from three to five, and optional integration of registrations such as EPFO, ESIC, and bank accounts.
(Link: MCA Public Notice Dated 08/04/2026)
H. Insolvency and Bankruptcy Board of India (IBBI)
Insolvency and Bankruptcy Code (Amendment) Act 2026: The IBC Amendment Act clarifies key definitions such as ‘security interest’, ‘service provider’, and ‘avoidance transaction’, and expands the scope of fraudulent and wrongful trading. It streamlines admission of insolvency applications by mandating strict timelines and limiting grounds for rejection once default is established. It also strengthens the role of information utilities, making recorded defaults sufficient evidence. The law introduces clearer provisions on withdrawal of applications, restricting it before constitution of the committee of creditors or after invitation of resolution plans.
— It introduces creditor-initiated insolvency resolution process, allowing financial creditors to directly trigger insolvency with prior approvals, thereby expediting proceedings. The committee of creditors is given enhanced supervisory powers during liquidation, including the ability to replace liquidators. New provisions address asset transfers of guarantors, group insolvency frameworks, and preservation of licenses post resolution.
(Link: IBC Amendment Act 2026 Dated 06/04/2026)
SC, Cooperative Society can only submit Resolution Plan for Corporate Debtor in Same Line of Business: Case of Nirmal Ujjwal Credit Coop Society Ltd vs Ravi Sethia, SC Judgement Dated 9th April 2026. The apex court held that section 64(d) of the Multi-State Cooperative Societies Act, restricts investment only to entities in the same line of business. Accordingly, Multi-State Cooperative Society is ineligible to submit resolution plan for corporate debtor which does not operate in same line of business.
SC Upholds Quashing of reopening Tax Notice due to IBC Clean Slate Doctrine: Case of ACIT vs AMW Auto Components Ltd, SC Judgement Dated 13th March 2026. The apex court upheld the quashing of tax reassessment notices, reinforcing the ‘Clean Slate Doctrine’ under the Insolvency and Bankruptcy Code (IBC). The ruling confirms that once a resolution plan is approved, tax authorities cannot reopen assessments or issue notices for previous, extinguished liabilities.
NCLAT, Insolvency Plea under section 95 filed during Interim Moratorium was Void Ab Initio: Case of Sushant Chhabra vs Catalyst Trusteeship Ltd, NCLAT Delhi Judgement Dated 27th March 2026. The appellate tribunal held that an insolvency application filed against a personal guarantor while an interim moratorium is already in effect is legally non-existent (void from start).
I. Reserve Bank of India (RBI)
Amendments to RBI Non Resident Investments in Debt Instruments Directions: The updated circular consolidates various directions issued regarding investments by Non-Resident Indians (NRIs) in debt instruments. It also covers provisions relating to the use of such debt instruments as collateral for transactions in exchange traded derivative contracts on recognized stock exchanges in India.
(Link: RBI Circular 10/2026 Dated 10/04/2026)
Assignment of Lead Bank Responsibility for new districts in Andhra Pradesh: RBI has assigned Lead Bank responsibilities to Union Bank of India, for the two new districts, Polavaram and Markapuram, in the State of Andhra Pradesh.
(Link: RBI Circular 09/2026 Dated 10/04/2026)
Guidelines to facilitate faster Cross Border inward Payments: The directions focus on reducing delays at the beneficiary bank stage by streamlining processes. Banks are required to promptly notify customers upon receipt of inward payment messages and ensure faster reconciliation of nostro accounts, preferably on a near real time basis or within one hour intervals. They are also advised to credit funds on the same business day if received during foreign exchange market hours, or by the next business day otherwise, subject to regulatory compliance.
(Link: RBI Circular 08/2026 Dated 09/04/2026)
Limits for investment in debt and sale of Credit Default Swaps by FPIs: The circular specify limits for 2026-27 for Foreign Portfolio Investor (FPI) investments in debt instruments and sale of Credit Default Swaps (CDS). The investment limits under the General Route remain unchanged at 6% for Government Securities (G-Secs), 2% for State Government Securities (SGSs), and 15% for corporate bonds. Incremental changes in G-Sec limits will continue to be equally divided between ‘General’ and ‘Long-term’ categories, while increases in SGS limits will be allocated entirely to the ‘General’ category. Investments in specified securities will continue under the Fully Accessible Route (FAR). Additionally, all investments under the Voluntary Retention Route (VRR) will now be subject to General Route limits. The aggregate CDS selling limit for FPIs is set at 5% of outstanding corporate bonds, amounting to Rs 3,30,464 crore.
(Link: RBI Circular 07/2026 Dated 06/04/2026)
Draft Amendments to Directions for identification of NBFC-UL and inclusion of Government owned NBFCs: The draft amendment relates to changes to the identification of Upper Layer NBFCs (NBFC-UL) under the Scale-Based Regulation framework. It replaces the existing dual methodology, based on asset size and parametric scoring, with a single, transparent criterion of asset size, setting the threshold at Rs 1,00,000 crore. It also proposes inclusion of government owned NBFCs in the Upper Layer, aligning with the principle of ownership neutral regulation. Additionally, NBFC-UL entities may be allowed to use State Government guarantees as a credit risk transfer tool without any cap, subject to conditions. The feedback/ comments from stakeholders are invited.
(Link: Draft Directions Press Release Dated 10/04/2026)
Discussion Paper on Exploring Safeguards in Digital Payments to Curb Frauds: The discussion paper proposes safeguards to curb rising digital payment frauds, particularly Authorised Push Payment (APP) frauds driven by social engineering. It proposes four key measures, i.e., introducing a time lag for high-value transactions above Rs 10,000 to allow cancellation, mandating additional authentication through a trusted person for vulnerable groups for transactions above Rs 50,000, restricting large credits in low-verified accounts, and enabling customer controlled safeguards such as transaction limits and a ‘kill switch’ to disable digital payments instantly. The feedback/ comments from stakeholders are invited.
(Link: RBI Discussion Paper, Press Release Dated 09/04/2026)
Draft Trade Receivables Discounting System (TReDS) Directions: RBI has issued draft Trade Receivables Discounting System (TReDS) Directions 2026, to strengthen financing access for MSMEs by rationalising and harmonising existing guidelines. The key reforms include, streamlined capital requirements aligned with non-bank payment system operators, simplified onboarding of MSME sellers, and permission for financiers to avail credit guarantee cover through entities like NCGTC. The framework prescribes a minimum net worth of Rs 25 crore for platform operators, robust governance and ‘fit and proper’ criteria, and clearer operational rules such as ‘without recourse’ financing, mandatory buyer payment obligations, and assignment registration with CERSAI. The feedback/ comments from stakeholders are invited.
(Link: Draft Directions, Press Release Dated 08/04/2026)
Draft Amendments to Directions on Investment Fluctuation Reserve (IFR): The draft amendments relates to IFR under RBI Classification, Valuation, and Operation of Investment Portfolio Directions. The proposed changes include, removing the IFR requirement for banks already maintaining capital charge for market risk under revised investment portfolio norms, shifting IFR compliance from a continuous requirement to a balance sheet date requirement, and harmonising IFR-related provisions across different banking categories to reduce inconsistencies and improve regulatory clarity. The feedback/ comments from stakeholders are invited
(Link: Draft Amendments to Directions Press Release Dated 08/04/2026)
Draft Amendments to Governance Directions: The draft amendment directions rationalize and streamline the matters placed before bank Boards, to enhance efficiency and focus on strategy and risk governance. These replace earlier prescriptive frameworks with principle-based guidance, emphasizing Board accountability for performance, risk management, and corporate governance standards. Banks are permitted to delegate certain policy approvals and reviews to Board committees, with Boards retaining authority over material amendments and key strategic decisions. The feedback/ comments from stakeholders are invited.
(Link: Draft Amendments to Directions Press Release Dated 08/04/2026)
Draft Amendment Directions on inclusion of quarterly profits to Common Equity Tier 1 (CET1) capital for CRAR: The draft proposes amendments to RBI Prudential Norms for Capital Adequacy Directions, for revision of guidelines governing the inclusion of quarterly profits in Common Equity Tier 1 (CET1) capital for computation of Capital to Risk Weighted Assets Ratio (CRAR) for banks. The banks may now include current-year profits in CET1 capital on a quarterly basis, subject to certain safeguards. These include mandatory auditing or limited review of financial statements and a standardized formula for calculating eligible profits, which deducts a portion linked to historical dividend pay-outs. Additionally, any cumulative net losses must be fully deducted while computing CET1 capital. The feedback/ comments from stakeholders are invited.
(Link: Draft Amendments to Directions Press Release Dated 08/04/2026)
Draft Consolidation of Supervisory Instructions: RBI has released draft consolidated supervisory instructions as part of its ongoing regulatory simplification initiative. It has now merged existing supervisory instructions into 64 Master Directions covering 11 types of regulated entities across nine functional areas. As a result, 626 circulars, including prior Master Circulars and Directions, are also proposed to be repealed. The feedback/ comments from stakeholders are invited.
(Link: Draft Consolidated Supervisory Instructions Press Release Dated 08/04/2026)
Draft Amendments to RBI Branch Authorisation Directions: The draft directions introduces a structured classification of service delivery points into Branches, Business Correspondent– Banking Outlets (BC-BO), and Business Correspondent–Banking Touchpoints (BC- BT), with clear operational definitions and minimum service requirements. It proposes simplification of eligibility norms for engaging BCs, mandates due diligence, and merges the Business Facilitator model into the BC framework to ensure uniformity. These standardize remuneration structures, improve governance through periodic board reviews, and introduce stricter monitoring, risk management, and consumer protection measures. The feedback/ comments from stakeholders are invited.
(Link: Draft Amendments to Directions Press Release Dated 06/04/2026)
J. Miscellaneous
SC, No personal hearing mandatory by banks before classifying Borrower Account as Fraud: Case of State Bank of India vs Amit Iron Pvt Ltd, SC Judgement Dated 7th April 2026. The apex court held that borrower does not possess any legal right to a personal hearing by banks before classifying their account as fraud account.
SC, Generation Based Incentive is over and above tariff set by State Electricity Regulatory Commission: Case of Southern Power Distribution Company of AP vs Green Infra Wind Solutions Ltd, SC Judgement Dated 25th March 2026. The apex court held that Generation Based Incentive is intended to be disbursed to GENCOs over and above the tariff set by State Electricity Regulatory Commission (SERC).
SC, Termination valid, Blacklisting invalid, enforces strict Natural Justice: Case of AKG Construction and Developers Pvt Ltd vs State of Jharkhand, SC Judgement Dated 2nd April 2026. The apex court upheld the termination of contract but set aside the blacklisting order, holding that blacklisting is not an automatic consequence of termination and requires independent application of mind and due process. It held that termination and blacklisting operate in different domains, i.e., termination affects existing contracts, while blacklisting impacts future business rights. Blacklisting carries serious civil consequences, including reputational damage and exclusion from govt contracts, and therefore, it requires stricter adherence to principles of natural justice.
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Compiled by: CMA Yash Paul Bhola, MBA, FCMA, Former Director (Finance), National Fertilizers Limited.
Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)
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