This weekly update (19–25 January 2026) consolidates significant notifications, circulars, and judicial developments across Income Tax, GST, Customs, DGFT, SEBI, IBBI, RBI, and allied laws. On the income-tax front, multiple statutory authorities and government bodies were granted exemptions under sections 10(46) and 10(46A), alongside important court rulings curbing arbitrary reassessment, clarifying royalty taxation, rejecting the concept of virtual service PE, and easing export deduction claims. GST developments included an advisory on RSP-based valuation for tobacco products, procedural relaxation by GSTAT during the initial phase of its online appeal system, and several AAR/AAAR rulings on ITC eligibility, classification, and valuation. Customs and DGFT updates covered revised tariff values and fresh Gold TRQ allocation under the India–UAE CEPA. SEBI introduced major compliance rationalisation measures, while IBBI and courts clarified insolvency jurisdiction and priority of dues. RBI circulars updated export credit subvention, PSL norms, and CRR/SLR frameworks. Miscellaneous rulings addressed labour law, criminal procedure, and cheque dishonour issues.
Notifications & Circulars issued during week (19th – 25th Jan 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Exemptions to Aligarh Development Authority: Aligarh Development Authority, an authority constituted under the Uttar Pradesh Urban Planning and Development Act 1973, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Income Tax Act.
(Link: Income Tax Notification 08/2026 Dated 19/01/2026)
Exemptions to Barnala Improvement Trust: Barnala Improvement Trust, an authority constituted under the Punjab Town Improvement Act 1922, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Income Tax Act.
(Link: Income Tax Notification 09/2026 Dated 19/01/2026)
Exemption to Agra Development Authority: Agra Development Authority, an authority constituted under the Uttar Pradesh Urban Planning and Development Act 1973, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for specified purpose under section 10(46A)(a) of Income Tax Act.
(Link: Income Tax Notification 10/2026 Dated 19/01/2026)
Exemptions to Karnataka State Rural Livelihood Promotion Society: Karnataka State Rural Livelihood Promotion Society, a body constituted by the Government of Karnataka, has been notified under section 10(46) for exemption on its income arising from amount received as Grants from Central and State Government and interest on bank deposits.
(Link: Income Tax Notification 11/2026 Dated 21/01/2026)
Exemptions to Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board: Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board, a Board constituted by the Government of West Bengal, has been notified under section 10(46) for exemption on its income arising from amount received as Cess collected under Building Workers Welfare Cess Act, Registration fees and interest on bank deposits.
(Link: Income Tax Notification 12/2026 Dated 21/01/2026)
Exemptions to Tamil Nadu e-Governance Agency: Tamil Nadu e-Governance Agency, an agency formed by the State Government of Tamil Nadu, has been notified under section 10(46) for exemption on its income arising from amount received as Contributions/ Grants from Government, Service charges, Dividend, Revenue sharing, Any other income and interest on bank deposits.
(Link: Income Tax Notification 13/2026 Dated 21/01/2026)
SC Dismisses Revenue appeal on income tax Reassessment Notices, applies Rajeev Bansal Ruling: Case of ITO vs Bharat Jayantilal Soni, SC Judgement Dated 9th January 2026. The apex court dismissed the SLP, affirming that income tax reassessment notices under Sections 148A(d) and 148 of the Income Tax Act were rightly quashed by the High Court. The decision reinforces that reassessment proceedings initiated without following proper legal procedures, as outlined in recent SC judgments, are invalid.
HC, Live Telecast Rights not Royalty due to absence of Enduring Benefit: Case of CIT (International Taxation) vs Sri Lanka Cricket, HC Delhi Judgement Dated 15th January 2026. HC held that Royalty requires enduring rights, payments for live telecast of cricket matches without recording or reuse rights are not taxable as royalty. Thus payments received for live telecast of cricket matches, where the rights are limited only to live transmission and do not confer any enduring benefit cannot be taxed as royalty under the Income Tax Act.
HC, Virtual Service PE not valid ground to deny Nil Withholding Certificate: Case of Ernst and Young LLP vs ACIT, HC Delhi Judgement Dated 14th January 2026. HC ruled that the concept of a “virtual service PE” is not contemplated by the Income Tax Act or the relevant Double Taxation Avoidance Agreements (DTAA). The court held that without physical presence or rendering services within India, a Virtual Service PE cannot be established, overturning tax demands on professional service fees.
HC Slams arbitrary income tax Reopening, Rs 1 Lakh cost per Case: Case of Radhika Roy vs DCIT, HC Delhi Judgement Dated 19th January 2026. HC quashed income tax reassessment notices issued to NDTV regarding 2016 proceedings on interest-free loans. It ruled that the petitioners did not fail to disclose material facts, making reassessment attempt invalid. HC termed repeated, ‘harassment’ notices as legally unsustainable, lacking jurisdiction, and imposed a Rs 2 lakh fine on Income Tax Department.
HC allows Consignment Wise BRC accepted for section 80HHC deduction Claims: Case of DD International Pvt Ltd vs CIT, HC P&H Judgement Dated 8th January 2026. HC clarified that consignment-wise Bank Realisation Certificates (BRC) are sufficient for exporters to prove their eligibility to avail deductions under Section 80HHC of the Income Tax Act pertaining to profits from export.
B. GST
GSTN Advisory on Retail Sale Price (RSP) based valuation of notified Tobacco Goods: Under Notifications 19/2025 and 20/2025, valuation for specified tobacco and related products is no longer linked to actual transaction value but is derived from the RSP printed on the package. GST must be computed using the prescribed RSP based formula, resulting in a deemed taxable value and tax amount that may differ from commercial consideration. Since existing e- Invoice, e-Way Bill, and GSTR-1/1A/IFF systems follow a transaction-value validation, taxpayers are advised to report the net sale value as “taxable value,” compute tax strictly as per the RSP formula, and report the total invoice value as net sale value plus tax.
(Link: GSTN Advisory Dated 23/01/2026, Tutorial)
GSTAT Clarifies Certification Rules and softens Appeal Scrutiny: The office order ease procedural hurdles during the initial rollout of the GSTAT online appeal portal. The registries has been directed to adopt a lenient approach while scrutinising appeal filings for six months. During this period, registries are instructed to raise only substantive defects that affect the merits of a case, and not defects of form that are merely technical or procedural. It clarifies that digitally generated documents from the GSTN system do not require certification, while scanned copies of physical documents attached to appeals must be duly signed.
(Link: GSTAT Office Order Dated 20/01/2026)
AAAR, Interactive Flat Panel Displays taxed at 28% as ‘Monitors’ under HSN 85285900: Case of Acer India Private Limited, AAAR Tamil Nadu Ruling Dated 8th December 2025. The applicant in the course of its business, undertakes supply of various models of ‘Acer’ Interactive Flat Panels within India either after importing them as finished goods or getting them manufactured on contract basis through third parties. The appellate authority upheld the AAR ruling that various models of ACER Interactive flat Panels with additional features are still classifiable under 85285900 (Monitors and Projectors, not incorporating television reception apparatus). The applicable rate of GST is 28%.
AAAR, ITC Denied on Electrical Works for factory expansion as Immovable Property: Case of Shibaura Machine India Private Limited, AAAR Tamil Nadu Ruling Dated 18th December 2025. The appellate authority upheld the AAR ruling that the taxes under GST paid on the electrical installation work carried out for expansion of factory for manufacturing activity is not eligible for availment of Input Tax Credit (ITC) by the applicant, as it is blocked under Sections 17(5)(c) and 17(5)(d) of the CGST Act.
AAAR Rejects ITC Claim, Firefighting & Sanitary Installations not eligible as ‘Plant & Machinery’: Case of Shibaura Machine India Private Limited, AAAR Tamil Nadu Ruling Dated 18th December 2025. The appellate authority upheld the AAR ruling that the taxes under GST paid on firefighting systems, and sanitary works during factory expansion, is not eligible for availment of Input Tax Credit (ITC). These were deemed ‘immovable property’ rather than ‘plant and machinery’, making them blocked credits under Section 17(5) of the CGST Act.
AAR, ITC Allowed on Food & Beverages as Part of Event Management Package: Case of Citius Holidays Private Limited, AAR West Bengal Ruling Dated 16th January 2026. AAR held that the applicant is eligible to avail Input Tax Credit (ITC) on food and beverage services under Section 17(5) in event management and tourism services. It should be noted that in case the applicant is using this food as an element of composite supply of event management services, invoice of the applicant issued to his customer must charge the rate of tax applicable to the principal supply and the applicant can avail ITC in respect of food as one of the elements of taxable composite supply of event management.
AAR, CKD E-Rickshaw treated as Finished Vehicle when Essential Parts Present: Case of Navya Electric Vehicles Private Limited, AAR West Bengal Ruling Dated 16th January 2026. AAR held that the supply of a complete set of components of an electric three-wheeler vehicle (e-rickshaw) in a Completely Knocked Down (CKD) form, should be classified as the finished vehicle itself, if it includes motor and any three of the other four major components (other than motor) viz. transmissions, axles, chassis and controller in proportionate number for the assembly of the finished vehicle. GST is applicable at 5% under HSN code 87038040 and serial 441 of Schedule I of Notification 11/2017. It should be classified as a set of parts if the supply does not include either motor or any two of the other four major components. In that case, the supply will be regarded as that of components of e-rickshaw and is taxed at 18%.
HC, GST Not payable on Statutory Fees collected by Electricity Regulators: Case of Punjab State Electricity Regulatory Commission vs Union of India, HC P&H Judgement Dated 15th January 2026. HC concluded that the regulatory functions discharged by the Commission are statutory obligations, not activities undertaken ‘in the course or furtherance of business’, and thus the fees (such as petition fee, ARR processing fee, and license fee) collected do not constitute ‘consideration’ for a taxable supply of services under the CGST Act.
C. Central Excise
No Notification/ Circular during the week.
D. Custom Duty
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 23rd January 2026. The tariff value for crude palm oil is set at USD 1075 per metric ton, while gold and silver have tariff values of USD 1567 per 10 grams and USD 2950 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7679 per metric ton.
(Link: Customs Notification 08/2026 (NT) Dated 22/01/2026)
E. Directorate General of Foreign Trade (DGFT)
Second Round of Gold TRQ Allocation for India–UAE CEPA: The procedure has been notified for the second round of allocation of Gold Tariff Rate Quota (TRQ) pursuant to the India–UAE Comprehensive Economic Partnership Agreement (CEPA) for FY 2025- 26. DGFT has invited fresh bids through an e-auction on the MSTC portal for a restricted quantity of 80 metric tonnes. The notice follows directions of the Delhi High Court requiring an expeditious review of TRQ allocations and a broader, more inclusive allocation policy, particularly for first-time applicants and entities without large historical turnover. The specific caps are prescribed for MSMEs and other units, while allowing participation by first-round allottees beyond their earlier allocations. Successful bidders will receive TRQ authorisations valid for six months.
(Link: DGFT Public Notice 45/2026 Dated 23/01/2026)
SC, Unpublished notification invalid, MIP applies only from Gazette Publication Date: Case of Viraj Impex Pvt Ltd vs Union of India, SC Judgement Dated 21st January 2026. The apex court held that subordinate legislation becomes enforceable only after Gazette publication. Since the notification was published on 11th February 2016, the MIP could not apply to imports under letters of credit opened before that date.
F. Securities and Exchange Board of India (SEBI)
Amendments to SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations: A notable change is the enhancement of the threshold for classification as an High Value Debt Listed Entities (HVDLEs) from outstanding non-convertible debt of Rs 1,000 crore to Rs 5,000 crore, thereby reducing compliance burden for mid-sized issuers. The amendments rationalise and streamline corporate governance norms, clarify applicability timelines, and exclude entities that fall below the revised threshold from continuing HVDLE- specific obligations. Investor service timelines are tightened by mandating credit of securities in demat form within 30 days, while dematerialisation requirements for transfers, transmission, and transposition are reinforced. The regulations also refine provisions on unclaimed amounts, board composition, director appointments, related party transactions, secretarial audit, and periodic governance reporting.
(Link: SEBI Notification Dated 20/01/2026)
Amendments to SEBI Issue & Listing of Non-Convertible Securities Regulations: A new definition of ‘retail individual investor’ has been inserted, limiting such status to individuals applying or bidding for debt securities up to Rs 2 lakh. Also, a proviso has been added to Regulation 31 allowing issuers to offer incentives, such as additional interest or a discount on issue price, to specified categories including senior citizens, women, serving and retired defence personnel, widows and widowers of defence personnel, retail individual investors, and other categories as notified. Crucially, the regulation clarifies that these incentives are restricted to the initial allottee and will not apply if the securities are subsequently transferred or transmitted.
(Link: SEBI Notification Dated 20/01/2026)
Master Circular for Framework on Social Stock Exchange (SSE): The Master Circular consolidate the entire regulatory framework governing the Social Stock Exchange (SSE) with the objective of providing stakeholders a single, comprehensive reference point. SEBI has expressly protected past actions, applications, rights, obligations, liabilities, penalties, and proceedings undertaken under the rescinded circulars, deeming them valid and enforceable under the corresponding provisions of the Master Circular.
(Link: SEBI Master Circular Dated 19/01/2026)
Consultation Paper, Circular under SEBI (Index Providers) Regulations: The paper proposes to define and operationalise the concept of ‘Significant Indices’. Under the proposal, an index will be classified as significant if it is tracked or benchmarked by domestic mutual fund schemes with cumulative assets under management (AUM) exceeding Rs 20,000 crore, calculated on a six-month daily average basis ending June 30 and December 31 each year. The computation rules are prescribed for schemes tracking multiple indices and for indices of indices. SEBI has also released a provisional list of significant indices and clarified that providers of such indices must apply for registration within six months, unless the indices are already regulated by the Reserve Bank of India. The comments/ feedback is invited from stakeholders.
(Link: SEBI Consultation Paper Dated 19/01/2025)
G. Ministry of Corporate Affairs (MCA)
No Notification/ Circular during the week.
H. Insolvency and Bankruptcy Board of India (IBBI)
SC, NCLT cannot decide Trademark Title disputes dehors Insolvency Process: Case of Gloster Limited vs Gloster Cables Limited, SC Judgement Dated 22nd January 2026. The apex court held that while exercising jurisdiction under Section 60(5) of IBC, the Adjudicating Authority cannot declare title over a trademark where such declaration does not arise out of or relate to the insolvency resolution process and would amount to modifying an approved resolution plan. The Court held that on the facts of the present case, the issue of title to trademark ‘Gloster’ did not arise out of or relate to insolvency resolution process. The dispute was essentially one of trademark ownership between two competing entities and could not be summarily adjudicated under Section 60(5).
NCLAT, CST Act does not create statutory charge, unpaid CST dues are Unsecured Debt: Case of State Tax Officer vs Nitin Narang, NCLAT Delhi Judgement Dated 7th January 2026. The appellate tribunal held that provisions of section 9(2) of the Central Sales Tax (CST) Act does not create statutory charge on the assets of the Corporate Debtor. Thus, unpaid CST dues are unsecured debt.
NCLAT, CIRP by Financial Creditors admission upheld as multiple instalment defaults cross IBC Threshold: Case of Karan Bhatia vs Tata Capital Financial Ltd, NCLAT Delhi Judgement Dated 27th October 2025. The appellate tribunal held that when multiple instalment defaults occur, the threshold limit is met if the total default amount exceeds Rs 1 crore, even if a specific date of default mentioned in the petition was for a lower amount. It upheld admission of a Section 7 (CIRP by Financial Creditors) IBC application.
IBBI Suspended Registered Valuer Organisation (RVO) for granting Provisional Membership to Ineligible Valuer: The proceedings arose from alleged enrolment of an ineligible individual as a valuer member in the Securities or Financial Assets class on a so- called “provisional” basis, collection of fees, permission to undergo mandatory training, and forwarding of the application to IBBI despite non-fulfilment of statutory eligibility criteria. The Authority held that the rules do not permit provisional or conditional enrolment and that only individuals meeting prescribed qualifications can be admitted and recommended. The RVO’s reliance on equivalence certificates, precedents, and FAQs was rejected as misplaced. IBBI suspended the RVO’s recognition for two years.
(Link: IBBI Order Dated 22/01/2026)
I. Reserve Bank of India (RBI)
Interest Subvention for Pre and Post Shipment Export Credit under EPM: The circular provide operational guidance for implementing the Government of India’s Interest Subvention Scheme for pre and postshipment export credit under the Export Promotion Mission (EPM) Niryat Prothsahan, introduced on a pilot basis. Lending institutions are directed to extend the interest subvention strictly in line with the operational instructions issued by DGFT. They are required to ensure that the benefit is provided only for eligible export credit and that all claims are submitted as per the prescribed procedures.
(Link: RBI Circular 195/2026 Dated 19/01/2026)
Amendments to RBI Priority Sector Lending – Targets and Classification Directions: The amendments update the methodology for computing Adjusted Net Bank Credit and off-balance sheet exposures, revise PSL targets, particularly reducing the overall target for Small Finance Banks, and clarify treatment of export credit, microfinance, housing, healthcare, securitisation, co-lending, on- lending, IBPCs and PSLCs. The new provisions permit reliance on external auditors’ certifications for determining PSL eligibility of underlying assets, while imposing caps and reporting safeguards to prevent double counting of benefits. These also introduce eligibility for bank lending to the National Co-operative Development Corporation for on-lending, prescribe revised reporting timelines, rationalise service charge norms, and update population-based classifications and district lists.
(Link: RBI Circular 196/2026 Dated 19/01/2026)
Amendments to RBI Cash Reserve Ratio and Statutory Liquidity Ratio Directions: The amendments align the existing framework with recent legislative and regulatory changes. These broaden coverage by explicitly including “other development financial institutions” within the relevant provisions, rationalise reporting by deleting specific phrasing under ‘Cash in hand’, and update statutory forms to reflect the expanded list of development financial institutions. The amendments revise Annexures to replace terminology, remove temporal qualifiers, and introduce a new reporting item for amounts placed with the RBI under the Standing Deposit Facility Scheme.
(Link: Commercial Banks – RBI Circular 197/2026 Dated 22/01/2026)
(Link: Small Finance Banks – RBI Circular 198/2026 Dated 22/01/2026)
(Link: Payments Banks – RBI Circular 199/2026 Dated 22/01/2026)
(Link: Regional Rural Banks – RBI Circular 200/2026 Dated 22/01/2026)
(Link: Local Area Banks – RBI Circular 201/2026 Dated 22/01/2026)
(Link: Urban Coop Banks – RBI Circular 202/2026 Dated 22/01/2026)
(Link: Rural Coop Banks – RBI Circular 203/2026 Dated 22/01/2026)
J. Miscellaneous
SC, Overtime Wages must include allowances under Factories Act: Case of Union of India vs Heavy Vehicles Factory Employees Union, SC Judgement Dated 20th January 2026. The apex court held that compensatory allowances such as House Rent Allowance (HRA), Transport Allowance, Clothing and Washing Allowance and Small Family Allowance must be included while computing overtime wages, as they fall within the expression “ordinary rate of wages” under Section 59(2) of Factories Act. The Court was of the opinion that different Ministries cannot assign varying meanings to a statutory provision when its intent is clear from the plain reading of Section 59(2) of the Act.
SC, Criminal FIR continues despite civil dispute claim, grants bail after Charge Sheet: Case of Smt.Shalini Bhateja vs State of UP, SC Judgement Dated 6th January 2026. The petitioners sought to quash the FIR regarding allegations of cheating, where a refund was supposedly miscredited to a similar account, resulting in multiple FIRs. The apex court rejected the quashing plea, directing the petitioners to appear before the jurisdictional court. The court granted liberty to the petitioners to apply for regular or anticipatory bail, directing that such applications be considered as per existing precedents.
HC, Cheque Tampering not a defence, material alteration still attracts section 138 of NI Act: Case of Abdul Hamid Wanni vs Abdul Hamid Lone, HC J&K Judgement Dated 21st November 2025. HC has refused to quash criminal proceedings in a cheque bounce case, holding that allegations of cheque alteration must be tested during trial.
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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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