Summary: This weekly compilation covers notifications, circulars and judicial or advance-ruling developments across Income Tax, GST, Central Excise, Customs, DGFT, SEBI, MCA, IBBI, RBI and miscellaneous regulatory subjects for 19–25 October 2026. Income-tax updates include Form 173A for specified government-securities exemptions and tax deduction relief on qualifying NDB Maharajah INR Bond interest. GST developments include Maharashtra advance rulings on electric-vehicle leasing, naval reverse-osmosis plant repairs, marine engines, promotional reward goods, flood-damaged batteries, vehicle bodies, educational laboratory testing, ready-mix concrete job work, property maintenance, yoga courses and second-hand paintings. Customs and DGFT updates address raw sugar imports, anti-dumping duty on titanium dioxide, certificates of origin, metallic scrap inspections and export input-output norms. SEBI material concerns institutional-client call recordings, early pay-in margin treatment and proposed investment approvals for market infrastructure institutions. The MCA section covers additional-fee relaxation for annual filing forms, while the insolvency section discusses financial-debt classification and treatment of unclaimed arbitral awards. RBI developments include operational risk, capital adequacy, FEMA compounding, sanctions compliance and derivatives limits. The miscellaneous section records phased commencement of the MSME Amendment Act, 2026, and a Supreme Court ruling concerning unpaid sale consideration. Original source links are retained for reference.
Notifications & Circulars issued during week (19th – 25th Oct 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
Income Tax
Form 173A Notified for Exemption on Government Securities: The notification inserts Rule 281A, requiring assessees claiming exemption under Schedule IV, Table Serial Numbers 13D and 13E, of the Income-tax Act, 2025, to furnish information in newly prescribed Form No. 173A. The form relates to exemptions on interest income and capital gains arising from government securities.
(Link: Income Tax Notification 137/2026 Dated 19/10/2026)
Exemption from TDS on NDB Maharajah INR Bond Interest: The notification provides that no tax shall be deducted at source on interest paid to qualifying bondholders during tax year 2026-27 and subsequent tax years. The specified Maharajah INR Bonds issued by NDB are INR-denominated debt instruments. The notification provides relief from TDS but does not independently exempt the underlying interest income from taxation.
(Link: Income Tax Notification 136/2026 Dated 19/10/2026)
GST
AAR, Long-Term Electric Vehicle Leasing Taxable as Financial Services under GST: Case of Inland Financial services Pvt Ltd, AAR Maharashtra Ruling Dated 28th September 2026. AAR ruled that the leasing of electric two-wheelers the party under a 48-month Vehicle Lease Agreement was classifiable as financial and related services under SAC 9971, rather than leasing or rental services without an operator under SAC 9973.
AAR, RO Plant Repair on Indian Navy Ships Attracts 18% GST: Case of Rochem Seperation Systems India Pvt Ltd, AAR Maharashtra Ruling Dated 28th September 2026. AAR ruled that maintenance, repair and overhaul services provided by the party in respect of reverse osmosis (RO) plants installed on ships, warships, reconnaissance vessels and submarines of the Indian Navy and Indian Coast Guard are liable to GST at 18%. (not the concessional 5%) It concluded that RO plants are independent machinery used for water purification and cannot be regarded as integral components or parts of vessels merely because they are installed on board ships.
AAR, GST Rate 5% on Marine Engines and Spare Parts Subject to Proof of Vessel End Use: Case of Marine Vision, AAR Maharashtra Ruling Dated 28th September 2026. AAR held that marine propulsion engines classified under HSN 8407 and 8408 and their spare parts under HSN 8409 are eligible for concessional GST at 5% when supplied as parts of specified vessels, provided their intended end use is established through verifiable documentary evidence.
AAR, Reward Goods are Gifts, No GST but ITC Blocked: Case of Goldmedal Electricals Pvt Ltd, AAR Maharashtra Ruling Dated 28th September 2026. AAR held that the party was not liable to discharge GST on reward goods transferred to dealers, retailers and others against redemption of points under its “Dhan Barse Scheme”. However, it denied input tax credit on the purchase of those goods because their distribution constituted gifts covered by section 17(5)(h) of CGST Act.
AAR, ITC Reversal Mandatory on Flood-Damaged Batteries despite Insurance Compensation: Case of Prime Products, AAR Maharashtra Ruling Dated 28th September 2026. AAR held that input tax credit (ITC) attributable to batteries and cells damaged by flooding must be reversed under Section 17(5)(h) of the CGST Act, to the extent of the reduction in their value, notwithstanding that the goods remained physically available and could subsequently be sold at reduced prices.
AAR, Vehicle Body Supply Is Goods, Not Job Work: Case of Kailash Vahn Private Limited, AAR Maharashtra Ruling Dated 28th September 2026. AAR held that the transactions of the party constituted a composite supply whose principal supply was motor vehicle bodies, classifiable as goods under HSN 8707. Fabrication, mounting on customer-owned chassis, finishing and allied services were ancillary to that supply.
AAR, Agricultural University Laboratory Testing for External Clients Attracts 18% GST: Case of Mahatma Phule Krishi Vidyapeeth, AAR Maharashtra Ruling Dated 28th September 2026. AAR held that laboratory and educational services provided directly to students, faculty, and staff as part of official academic or research activities are exempt under Entry No. 66(a) of notification No. 12/2017 Central Tax (Rate). The testing services provided to external entities, including private companies, commercial organizations, and non-exempt clients, do not qualify for educational exemptions.
AAR, RMC Job Work taxable at 18% from 22 September 2025: Case of Prayatna Infratech Pvt Ltd, AAR Maharashtra Ruling Dated 28th September 2026. AAR held that party’ activity of preparing ready-mix concrete (RMC) from raw materials owned and supplied by the receiptant constitutes a supply of services and qualifies as job work under Section 2(68) of the CGST Act. The activity falls under Heading 9988 and, specifically, SAC 998853, covering other non-metallic mineral product manufacturing services. The GST was payable at 12% up to and including 21st September 2025 and at 18% from 22nd September 2025.
AAR, GST Payable on Builders’ Advance and Monthly Maintenance Charges: Case of Vardhaman Homes. AAR Maharashtra Ruling Dated 28th September 2026. AAR held that maintenance services supplied by a real estate developer to flat purchasers constitute a taxable supply under Section 7 of the CGST Act, notwithstanding the developer’s statutory obligation to maintain the building.
AAR, Paid Yoga Courses Taxable, BMC Public Health Services Exempt: Case of Shri Ambika Yoga Kutir, AAR Maharashtra Ruling Dated 28th September 2026. AAR ruled that paid yoga training and certification by the party is taxable under GST. While unconditional donations received by the trust are exempt from GST, any payments linked to services provided will attract tax. The ruling distinguishes between charitable activities and structured professional training, emphasizing that the latter does not qualify for GST exemption.
AAR, GST Margin Scheme not available to Auction Intermediary: Case of Saffron Art Private Ltd, AAR Maharashtra Ruling Dated 28th September 2026. The party procures paintings on an approval basis from registered and unregistered owners and sells them via online auction to the highest bidder. AAR ruled that a 12% GST rate applies to the sale of second-hand or used paintings.
Central Excise
No Notification/ Circular during the week.
Custom Duty
Customs Duty Exemption on Raw Sugar Extended till December 2026: The notification extends the validity of the customs duty exemption for raw sugar imports to 31st December 2026.
(Link: Customs Notification 33/2026 (T) Dated 22/10/2026)
Common Adjudicating Authority appointed for Amway Customs Notices: The Principal Commissioner/Commissioner of Customs (Nhava Seva-I), JNCH, Mumbai Zone-II, has been appointed as the common adjudicating authority for seven specified show cause notices concerning Amway India Enterprises Pvt Ltd.
(Link: Customs Notification 87/2026 (NT) Dated 21/10/2026)
Anti-Dumping Duty on Titanium Dioxide originating in or exported from China: Anti-dumping Duty has been imposed on imports of Titanium Dioxide originating in or exported from China, and imported into India. It shall be effective for a period of five years.
(Link: Customs Notification 26/2026 (ADD) Dated 24/10/2026)
Rescind notification 12/2025-Customs (ADD), Dated 10th May 2025: The notification rescinds earlier Notification 12/2025-Customs (ADD), dated 10th May 2025. The rescinded notification relates to anti-dumping duty (ADD) on imports of Titanium Dioxide originating in or exported from China.
(Link:Customs Notification 25/2026 (ADD) Dated 24/10/2026)
Clarifications on Acceptance of New Zealand Electronic Certificates of Origin (e-CoO) under FTA: It states that an e-CoO is valid for claiming preferential tariff treatment if issued in the prescribed format, bearing the issuing body’s seal and authorised signatory’s signature, and satisfying all other prescribed requirements. Importers or Customs Brokers must upload the e-CoO on e-Sanchit and carefully enter its certification number, date and originating criteria in the bill of entry.
(Link: Customs Instructions 21/2026 Dated 19/10/2026)
Directorate General of Foreign Trade (DGFT)
Extension of Timeline for Import of Duty-Free Raw Sugar: The timeline for duty-free import of 10 lakh MT of raw sugar under the Tariff Rate Quota (TRQ) is extended till 31st December 2026.
(Link: DGFT Notification 45/2026 Dated 19/10/2026)
Four New SIONs notified for Doxycycline and Clobetasol Exports: The public notice inserts four new Standard Input-Output Norms (SIONs), numbered A-3715, A-3716, A-3717 and A-3718, under the Chemical and Allied Product category, Product Code ‘A’. Three entries cover doxycycline tablets, while the fourth covers clobetasol propionate.
(Link: DGFT Public Notice 36/2026 Dated 23/10/2026)
Clarifications on PSIC Exemption for Import of Metallic Waste and Scrap: The amended provision retains the general requirement for a Pre-Shipment Inspection Certificate (PSIC) from the country of origin. However, PSIC is exempted, both shredded and unshredded metallic waste and scrap imported from designated safe countries or regions (the USA, UK, Canada, New Zealand, Australia and the EU), subject to specified safeguards. The consignment must carry a certificate from the supplier or scrap yard authority confirming that it contains no radioactive materials or explosives. It must enter through one of eleven specified sea ports.
(Link: DGFT Public Notice 35/2026 Dated 21/10/2026)
Extension of timeline for surrender of unutilised TRQ quantity allocated for Import of 10 Lakh MT of Raw Sugar: The public notice extends the timeline prescribed for surrender of unutilised TRQ quantity allocated for import of Raw Sugar under TRQ up to 15th November 2026, subject to payment of an amount equivalent to 0.5% of the CIF value of the surrendered quantity, as prescribed under the existing modalities.
(Link: DGFT Public Notice 34/2026 Dated 19/10/2026)
DGFT Advises Caution in Dealings with Julfikar Fashions: A formal advisory and precautionary warning has been issued against M/s Julfikar Fashions Ltd, Bangladesh. It has been advised to exercise enhanced caution and strict due diligence before entering into any business arrangements or commercial transactions with the party.
(Link: DGFT Trade Notice 31/2026 Dated 21/10/2026)
Securities and Exchange Board of India (SEBI)
Institutional Client Call Recordings Made Optional: The circular removes the mandatory requirement for Research Analysts (RAs) and Research Entities (REs) to maintain call recordings of interactions with institutional investors.
(Link: SEBI Circular Dated 23/10/2026)
Margin Waiver on Subsequent Buy/Sell Transactions Post Early Pay-In (EPI) in Cash Segment: The circular introduces a real-time margin waiver for subsequent cash-segment buy/sell positions where a client has a net sell obligation in a settlement and the clearing corporation (CC) has successfully accepted Early Pay-In (EPI) of the sold securities. The CC shall not collect margin from the trading member (TM) or clearing member (CM) on such subsequent positions up to the accepted EPI amount. The available EPI value on the trade date will be the lower of the EPI value and the value of securities sold segments.
(Link: SEBI Circular Dated 22/10/2026)
Consultation Paper for providing an automatic approval route for investment in related activities by the MIIs: The paper proposes an automatic approval route for specified related activities and fund deployments by recognised stock exchanges and depositories, excluding recognised clearing corporations. It covers specific related activities, fund deployments using operational funds, and functionally similar regulated activities previously approved by SEBI. Annual deployments are capped based on a percentage of net worth, requiring post-deployment net worth of at least 1.5 times the regulatory minimum, alongside mandatory board approval, conflict controls, and half-yearly reporting. The feedback/ comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 22/10/2026)
Ministry of Corporate Affairs (MCA)
Extension of Timeline for AOC-4 and MGT-7 Filing for 2025-26: The circular extends filing timelines for financial statements and annual returns for Financial Year 2025–26, without payment of additional fees. companies may file their financial statements in e-Forms AOC-4, AOC-4 (CFS), AOC-4 (XBRL), AOC-4 NBFC (Ind AS) and AOC-4 CFS NBFC (Ind AS) up to 31st December 2026 without payment of additional fees. Similarly, annual returns in e-Forms MGT-7 and MGT-7A may be filed up to 31st January 2027.
(Link: MCA General Circular 05/2026 Dated 24/10/2026)
Insolvency and Bankruptcy Board of India (IBBI)
NCLAT, TDS and Loan Entries cannot Alone Convert Share Purchase Advance into Financial Debt: Case of Catalyst Refinery Services Private Limited vs Ganpati Global Private Limited, NCLAT Delhi Judgement Dated 16th October 2026. The appellate tribunal held that balance-sheet entries, balance confirmations and TDS deductions do not, by themselves, establish financial debt where the underlying payment was made towards a share purchase.
HC, Unclaimed Arbitral Award Extinguished under IBC, Court Deposit Refundable: Case of McNally Bharat Engineering Company Limited vs Metso India Pvt Ltd, HC Delhi Judgement Dated 3rd August 2026. HC held that a monetary claim arising from an arbitral award stands extinguished upon approval of a resolution plan under IBC, where the award holder has failed to lodge its claim with the Resolution Professional and the claim is not included in the approved plan. It further held that money deposited with a court as security for staying enforcement of an arbitral award remains the property of the Corporate Debtor (CD) and does not become the property of the award holder merely because it is held in judicial custody. The court directed the release of the deposited amount with interest to CD.
Reserve Bank of India (RBI)
Amendments to RBI Commercial Banks Forthcoming Instructions Directions: The amendments provide indicative mapping of Business Indicator constituents to financial statement schedules, while requiring banks to follow the operational risk framework’s descriptions and sub-items wherever financial statement measurement, classification or presentation differs. The revised table clarifies the treatment of operating lease rentals, expenses, depreciation and impairment. Interest rate derivative assets affecting interest income must be included in interest earning assets at positive fair value, without subtracting negative fair values. The Loss Component used in calculating Internal Loss Multiplier will equal 15 times average annual operational risk losses, net of recoveries.
(Link: RBI Circular 299/2026 Dated 23/10/2026)
Delegation of Compounding of certain Contraventions under FEMA to Regional Offices: The circular delegates powers to compound contraventions relating to overseas investments, borrowing and lending, and guarantees to select Regional Offices to promote customer service.
(Link: RBI Circular 298/2026 Dated 23/10/2026)
Amendments to RBI Commercial Banks Prudential Norms on Capital Adequacy Directions: The circular prescribe minimum leverage ratios of 4% for domestic systemically important banks and 3.5% for other banks. Indian branches of global systemically important banks must maintain 3.5% plus their applicable G-SIB leverage-ratio buffer, including any additional buffer prescribed by the home regulator. The revised exposure-measure rules address regulatory deductions, securitisations, unsettled trades, cash pooling, collateral, securities financing transactions and off-balance-sheet items.
(Link: RBI Circular 297/2026 Dated 23/10/2026)
Updates on UNSC Sanctions List Under UAPA Compliance: MEA has informed about the UNSC amendments on its ISIL & Al-Qaida Sanctions List of individuals and entities (Removal of Seven Entities), which are subject to the assets freeze, travel ban and arms embargo. Regulated Entities (REs) are advised to take note for necessary compliance in terms of Master Directions on KYC.
(Link: RBI Circular 296/2026 Dated 19/10/2026)
Amendments to RBI Small Finance Banks Miscellaneous Directions: The circular has deleted the prudential regulatory ceiling that previously capped the gross PV01 (Price Value of a Basis Point) of non-option rupee derivative contracts at 0.25% of a bank’s net worth.
(Link: RBI Circular 295/2026 Dated 19/10/2026)
Amendments to RBI Commercial Banks Miscellaneous Directions: The circular has deleted the prudential regulatory ceiling that previously capped the gross PV01 (Price Value of a Basis Point) of non-option rupee derivative contracts at 0.25% of a bank’s net worth.
(Link: RBI Circular 294/2026 Dated 19/10/2026)
Miscellaneous
MSME Amendment Act 2026, Commencement Dates for Various Sections: The notification has appointed two dates for commencement of specified provisions of the Micro, Small and Medium Enterprises Development (Amendment) Act 2026. Sections 2 to 7, Section 11 and Sections 13 to 17 (Definitions, the National Board, investment-and-turnover-based classification, free and voluntary digital registration, consequential interest provisions, TReDS-based settlement of MSME invoices, the establishment of additional Facilitation Councils, disclosures, penalties, adjudication, appeals and rule-making powers) came into force on 15th October 2026, whereas Section 12 (Composition of Facilitation Councils) will come into force on 15th December 2026. Sections 8, 9 and 10, dealing with significant delayed-payment dispute-resolution and enforcement reforms, have not been assigned a commencement date under this particular notification.
(Link: MSME Notification Dated 12/10/2026)
SC, Unpaid Sale Consideration Does Not Void Completed Sale Deed: Case of Raziya Begum Vs. Nafisa Begum Abdul Hamid, SC Judgement Dated 7th August 2026. The apex court held that a completed sale cannot be declared void merely because the purchaser failed to pay balance sale consideration promised under sale deed. Where ownership was intended to pass against a price partly paid and partly promised, the seller’s remedy is to seek recovery of the unpaid amount, rather than cancellation of the conveyance.
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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)
