During the week of 2–8 March 2026, several important notifications, circulars, and judicial decisions were issued across regulatory authorities including Income Tax, GST, Customs, DGFT, SEBI, IBBI, and RBI. The Income Tax Department amended Rules 114F, 114G, and 114H to expand reporting requirements to include crypto assets, central bank digital currencies, and electronic money products, strengthening financial transparency. Courts delivered significant rulings, including that pending tax appeals do not bar criminal prosecution for tax evasion, and that seismic survey services in oil exploration are not taxable as fees for technical services or royalty. In GST developments, High Courts ruled that deposits made under protest cannot be treated as voluntary payments and that negative blocking of the electronic credit ledger is invalid. Customs authorities introduced relief measures for export cargo affected by the Strait of Hormuz disruption and extended deferred customs duty benefits for eligible manufacturers. RBI also proposed new rules to compensate victims of digital payment fraud, marking a major shift in consumer protection within India’s digital banking ecosystem.
Notifications & Circulars issued during week (2nd – 8th Mar 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Amendments in Income Tax Rules & Forms to include Crypto Assets and Digital Currency Reporting: The Rule 114F has been expanded to include provisions relating to central bank digital currencies, specified electronic money products, and relevant crypto assets. Depository accounts are now defined to include accounts representing electronic money products or central bank digital currencies held for customers. It recognizes “qualified non-profit entities” and prescribes conditions for their classification. Further, financial assets for reporting purposes may include interests in relevant crypto-assets.
— Rule 114G has been amended to strengthen reporting obligations of financial institutions. Reporting financial institutions must now maintain and report additional information, including whether valid self-certification has been provided, whether an account is a joint account and the number of joint account holders, and the role through which a person qualifies as a controlling person of an entity. It must also report the type of account and whether it is pre-existing or new.
— Rule 114H has been amended to revise due diligence procedures, define timelines for identifying reportable accounts, and allow use of pre-existing account procedures where self-certification cannot be obtained immediately.
(Link: Income Tax Notification 19/2026 Dated 05/03/2026)
SC, Pending Appeals do not Bar Criminal Action: Case of Saumya Chaurasia vs Union of India, SC Judgement Dated 27th February 2026. The case relates to Income Tax prosecution arising from search and seizure, for which she was arrested. The apex court dismissed a plea by Saumya Chaurasia, challenging prosecution sanction notices in a tax evasion case, allowing the Income Tax Department to proceed with criminal charges under Sections 276C and 278E of the Act.
HC, Seismic survey services in connection with oil exploration is not in nature of FTS or Royalty: Case of PGS Geophysical vs Income Tax Department, HC Delhi Judgement Dated 20th February 2026. HC held that seismic survey services in connection with exploration of oil cannot be held to be in nature of Fees for Technical Services (FTS) or Royalty and hence not covered under section 44DA of the Income Tax Act.
HC Reduces TDS Rate to 2% as 15% Withholding Certificate lacked Proper Reasoning: Case of Cvent vs DCIT, HC Delhi Judgement Dated 27th February 2026. HC reduced the TDS withholding tax rate for the US based company from 15% to 2% under section 197 for AY 2026-27. The court deemed the 15% rate, based on past assessments, as legally unsustainable, as the company had fully disclosed material facts.
HC, Interest on TDS refund allowed as Assessing Officer cannot decide delay under Section 244A(2): Case of PCIT vs HCL Infotech Pvt Ltd, HC Delhi Judgement Dated 10th February 2026. At the outset, the court accepted the stated reasons delay of 690 days in re-filing the appeal and condoned the delay. HC noted that interest on refund under Section 244A is ordinarily payable as a matter of course and may be denied only in exceptional circumstances where the delay is attributable to the assessee. It also noted that the statute specifically assigns the authority to determine the period of delay attributable to the assessee to higher authorities such as the PCCIT/ CCIT/ CIT. HC thus, ruled that an Assessing Officer (AO) cannot unilaterally decide whether a delay in processing a tax refund is attributable to taxpayer and allowed interest on TDS refund.
B. GST
Appointment of Joint Commissioner CGST Daman as Concerned Authority: The notification amends earlier notification 14/2018 Union Territory Tax, and substitutes the existing entries. Specifically, in column (3), item (i) is replaced to designate Ms. Krati Nigam, Joint Commissioner CGST, Daman as the concerned authority. It ensures that the correct officer is specified for the relevant GST related function, under the Union Territory GST framework.
(Link: UTGST Notification 01/2026 Dated 06/03/2026)
HC, GST Orders quashed because deposit made ‘Under Protest’ was treated as Voluntary: Case of Deepak Agro Industries vs State of HP, HC HP Judgement Dated 24th February 2026. HC held that deposits made under protest cannot be treated as voluntary payments. The judgment reinforces that payments made “under protest” during investigation or adjudication proceedings do not constitute voluntary acceptance of liability.
HC, Negative blocking of GST Electronic Credit Ledger invalid because Rule 86A applies only to Available ITC: Case of SPL Motors Private Limited vs Union of India, HC P&H Judgement Dated 19th November 2025. HC held that blocking ITC beyond the available balance and creating a negative entry is not permitted under the rule.
AAR, Semen Sorting Services exempt as Job Work supporting Animal Husbandry: Case of Jiva Sciences Private Limited, AAR Gujarat Ruling Dated 3rd March 2026. The company uses proprietary technology to separate X and Y chromosome-bearing sperm cells from raw bovine semen provided by semen stations. Thus, it provides advanced technology interventions for producing “sorted semen” doses, that ensure a higher probability of female offspring. The AAR ruled that this process constitutes a service supporting animal husbandry, and is exempt from GST
AAR, Corpus or Sinking Fund collected by Housing Society is Taxable as Advance under GST: Case of Godrej United Owners Association, AAR Karnataka Ruling Dated 12th February 2026. AAR ruled that the Rs 7,500 exemption for housing societies is calculated monthly, water supply forms part of a composite maintenance service and is not separately exempt, corpus or sinking funds are treated as advances liable to GST at the time of receipt, depreciation in books cannot determine GST liability, such funds are not to be clubbed with maintenance charges for exemption calculation, and voluntary festival contributions are not taxable as they do not constitute consideration for any supply.
AAR, Electricity & Water Charges recovered by Housing Society Taxable under GST: Case of Sandeep Vihar Owners Association, AAR Karnataka Ruling Dated 12th February 2026. AAR ruled that recoveries of water and electricity charges are part of maintenance services, corpus fund contributions constitute taxable advances for future services with GST payable at the time of collection, and community centre charges are part of maintenance charges.
AAR, Used Car dealer can claim ITC on Business Expenses as ITC Restriction applies only to Vehicles: Case of Toyota Mobility Solution and Services India Pvt Ltd, AAR Karnataka Ruling Dated 12th February 2026. The applicant purchases used passenger vehicles, undertakes minor refurbishment and repairs, and subsequently sells the vehicles to end customers. The company incurs various ancillary expenses in the course of its operations, which include refurbishment charges, marketing and advertisement expenses, professional fees, manpower expenses, office expenses etc.
— The applicant sought an advance ruling on whether input tax credit (ITC) can be availed on goods and services other than the purchase of used vehicles when the company avails the benefit of Notification 08/2018- Rate dated 25th January 2018. (Under this notification, GST on the sale of used motor vehicles is payable on the margin between the selling price and purchase price, generally at the rate of 18%). AAR ruled that the applicant is eligible to avail input tax credit on such goods and services other than the purchase of used motor vehicles.
AAR, GST not payable on Solid Waste Services as they are Pure Services to Gram Panchayat: Case of Anonymous Indian Charitable Trust, AAR Karnataka Ruling Dated 12th February 2026. The applicant provides services to Gram Panchayat, which include collection and transportation of solid waste from rural areas, segregation and processing of waste, recycling and disposal at authorized facilities, street sweeping and drain cleaning. AAR ruled that the solid waste management services provided by the applicant to the Gram Panchayat qualify for exemption under entry number 3 of Notification 12/2017 dated 28th June 2017, and are services are exempt supplies, not liable to GST.
C. Central Excise
No Notification/ Circular during the week.
D. Custom Duty
Return of export cargo from international waters due to closure of the Strait of Hormuz: The government has relaxed customs procedures for export cargo returning to India after vessels were forced to turn back due to disruptions in maritime routes, including the closure of the Strait of Hormuz. The measures, effective for 15 days from 8th March 2026, include allowing containers to be unloaded without standard import paperwork, such as a Bill of Entry, and enabling the cancellation of shipping bills even after the Export General Manifest (EGM) has been filed. The authorities will verify container details against shipping bills and check seal integrity, with 100% examination for tampered or broken seals. If exporters have already received tax benefits or export incentives (e.g., IGST refunds, duty drawback), these amounts must be repaid to the government. Meanwhile, a new option will be introduced on the ICEGATE platform to facilitate the cancellation of shipping bills post-EGM.
(Link: Customs Circular 09/2026 Dated 08/03/2026)
Extension of Deferred Payment of Customs Duty benefits to ‘Eligible Manufacturer Importer’ (EMI): The initiative allows Eligible Manufacturer Importers (EMI) to clear imported goods without paying Customs duty at the time of clearance. Instead, the applicable duty can be paid on a monthly basis as prescribed under the Deferred Payment of Import Duty Rules,. The facility will be available from 1st April, 2026 till 31st March, 2028. This facility shall be available to EMI meeting prescribed criteria related to Customs and GST compliance, turnover, financial standing and past track record. During the validity period of the scheme, approved Eligible Manufacturer Importers are expected to progressively obtain AEO-T2 or AEO-T3 status, enabling access to enhanced facilitation, faster clearances and priority treatment under the AEO Programme.
(Link: Customs Circular 08/2026 Dated 28/02/2026)
E. Directorate General of Foreign Trade (DGFT)
Automatic extension of the Export Obligation (EO) period up to 31st August 2026: In view of the prevailing geopolitical developments impacting global shipping routes, logistics corridors and international supply chains, and with a view to facilitating exporters, the Export Obligation (EO) period / Block-wise EO fulfilment period in respect of specified Advance Authorisations and Export Promotion Capital Goods (EPCG) Authorisations, expiring between 1st March 2026, and 31st May 2026, has been automatically extended up to 31st August 2026 without payment of composition fee.
(Link: DGFT Public Notice 51/2026 Dated 06/03/2026)
Launch of Support for Emerging Export Opportunities under Export Promotion Mission (EPM): The initiative aims to improve global trade connectivity and liquidity in under-served markets. The Government will provide risk- sharing support through the Export-Import Bank of India (Exim Bank), enabling banks to extend non-recourse trade finance instruments for exports to under- served markets. The scheme primarily targets MSMEs involved in international value chains and holding valid IEC and Udyam registration. Eligible exporters will apply through the DGFT portal to obtain a unique identification number and access trade finance support through partner banks. Risk-sharing guarantees ranging from 10% to 80% of transaction value may be provided based on risk assessment.
(Link: DGFT Trade Notice 32/2026 Dated 06/03/2026)
Launch of Credit Assistance for E-Commerce Exporters under Export
Promotion Mission (EPM): The initiative aims to improve access to working capital for Micro, Small and Medium Enterprises (MSMEs) engaged in cross-border e-commerce. The Government will provide credit guarantee cover to banks for working capital facilities such as cash credit or overdraft and will also offer interest subvention support. The scheme will initially operate on a pilot basis through the Export-Import Bank of India (Exim Bank) in coordination with the National Credit Guarantee Trustee Company (NCGTC). Eligible MSMEs must hold a valid Importer-Exporter Code and Udyam registration and demonstrate export activity through courier, postal routes, or overseas inventory.
(Link: DGFT Trade Notice 31/2026 Dated 06/03/2026)
Operationalisation of Inter-Ministerial Group (IMG) for Supply Chain Resilience: The IMG has been constituted under the chairmanship of the Special Secretary, Department of Commerce and DG, DGFT to evaluate the impact of ongoing geopolitical developments on India’s exports, particularly disruptions in global supply chains. The IMG will monitor international developments affecting supply chains, assess sector-wise export challenges and critical import vulnerabilities, and facilitate coordination among various Ministries and Departments. Also, DGFT has established an internal coordination mechanism to enable real-time monitoring of supply chain issues and inter-agency collaboration. Trade and industry have also been invited to report supply chain disruptions to DGFT for examination and coordinated action.
(Link: DGFT Trade Notice 30/2026 Dated 03/03/2026)
F. Securities and Exchange Board of India (SEBI)
Introduction of Voluntary Lock in or Debit freeze facility to Mutual Fund Folios: This facility will voluntarily enable investors to lock their mutual fund folios to ensure that no units are debited until the folio is unlocked. It will be available for both demat and non-demat (Statement of Account) folios. The registrars and transfer agents (RTAs) will provide the folio locking facility through the MF Central platform, which was introduced to improve investor experience in mutual fund transactions and service requests. The facility will be available only to KYC-compliant investors with a valid registered email ID and mobile number.
(Link: SEBI Circular Dated 06/03/2026)
Guidelines for Custodians, mandates Activity Segregation and Client Disclosures: The circular specifies conditions regarding segregation of activities, outsourcing, vault requirements, governance obligations, risk management, technology infrastructure, business continuity planning, and reporting obligations for custodians. Custodians that are not banks or bank affiliates must conduct financial services within and outside SEBI’s regulatory purview through separate Strategic Business Units (SBUs) and maintain separate accounts while meeting net worth requirements excluding the SBU books. Custodians providing unregulated services must disclose this to clients and obtain acknowledgements regarding lack of SEBI grievance recourse.
(Link: SEBI Circular Dated 04/03/2026)
Regulatory Reporting by Alternative Investment Funds (AIFs), Ease of Compliance Burden: Earlier, AIFs were required to submit detailed activity reports to SEBI on a quarterly basis within 15 days of the end of each quarter through formats hosted by the Indian Venture and Alternate Capital Association (IVCA). Under the revised system, they must submit a comprehensive Annual Activity Report through the SEBI Intermediary Portal within 30 days from the end of each financial year. Also, a limited Quarterly Activity Report will be required within 15 days of the end of each quarter.
(Link:SEBI Circular Dated 04/03/2026)
G. Ministry of Corporate Affairs (MCA)
No Notification/ Circular during the Week.
H. Insolvency and Bankruptcy Board of India (IBBI)
Electronic Filing of Forms to monitor Insolvency Resolution Processes for Personal Guarantors to Corporate Debtors: Previously, Resolution Professionals submitted periodic information through emails, which was considered inefficient. The new electronic platform provide for filing structured forms covering different stages of the process, including admission, report submission, public announcement, repayment plan, implementation, and periodic status updates. The forms, labelled PGIRP-1 to PGIRP-6, must be submitted within specified timelines, generally by the 10th day of the subsequent month after each procedural milestone. Insolvency professionals must upload forms with supporting documents using digital signatures or e-signatures, and they are responsible for ensuring accuracy and completeness.
(Link: IBBI Circular Dated 06/02/2026)
NCLAT, Demand notice under section 13(2) of SARFAESI is valid notice of Invocation of Guarantee: Case of Ujwal Gupta vs Union Bank of India, NCLAT Delhi Judgement Dated 7th January 2026. The appellate tribunal held that a demand notice under section 13(2) of the SARFAESI Act can constitute a valid invocation of a personal guarantee under the IBC. The tribunal held that the substance of the notice matters more than its label, and addressing the guarantor as a “director” does not invalidate the invocation if the intent to claim dues is clear.
NCLAT, Corp Guarantee capped below Rs 1 Crore threshold, CIRP not Maintainable: Case of Pravir Krishak vs Bank of Baroda, NCLAT Delhi Judgement Dated 7th January 2026. The appellate tribunal set aside order against a corporate guarantor because the total liability, including interest and charges, was contractually capped at Rs 75 lakh, failing to meet the threshold required for section 7 IBC proceedings. The ruling clarified that a capped guarantee amount limits the entire liability, making the insolvency plea non-maintainable.
NCLAT, CoC is bound by finality of resolution plan and cannot modify Post Approval: Case of Bank of Baroda vs IDBI Bank Limited, NCLAT Delhi Judgement Dated 23rd December 2025. The appellate tribunal held that post approval of Resolution Plan, the Committee of Creditors (CoC) itself is also bound by its finality and cannot be allowed to tinker with or modify the resolution plan including mechanism of distribution. The appeal is dismissed.
NCLAT, Approved Resolution Plan could not be reopened or remanded by CoC: Case of Mehar Bhoomi Bhawan Private Limited vs Shashi Bhushan Prasad, NCLAT Delhi Judgement Dated 22nd December 2025. The appellate tribunal held that once a Resolution Plan was approved by the CoC and submitted for approval under Section 31 of IBC, the plan becomes binding inter se between the CoC and the Successful Resolution Applicant, and neither the CoC nor any subsequent reconstitution of the CoC can withdraw from or revisit the approved plan.
I. Reserve Bank of India (RBI)
Updates on UNSC Sanctions List Under UAPA Compliance: MEA has informed about the UNSC amendments on its ISIL (Da’esh) and Al-Qaida Sanctions List of individuals and 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 225/2026 Dated 02/03/2026)
Draft Amendment Directions for Review of Framework of Limiting Customer Liability in Digital Transactions: The proposed rules target individual losses up to Rs 50,000 allowing bona fide victims who report fraud within five days to receive up to 85% of their net loss or Rs 25,000, whichever is lower. Under the new sharing protocol, the financial burden of this compensation is distributed between the RBI and the banks involved in the transaction to ensure rapid relief for the customer. It also expands the definition of “unauthorised transactions” to include cases of trickery or coercion, while placing the burden of proof on banks and mandating instant SMS alerts for all transactions over Rs 500. It also Ensures that customers face no financial loss if fraud occurs due to bank negligence or third-party breaches reported within five days. The comments/ feedback from stakeholders is invited.
(Link: Press Release Draft Amendment Directions Dated 06/03/2026)
(Link: Draft- Commercial Banks- Responsible Business Conduct)
(Link: Draft- Small Finance Banks- Responsible Business Conduct)
(Link: Draft- Payments Banks- Responsible Business Conduct)
(Link: Draft- Local Area Banks- Responsible Business Conduct)
(Link: Draft- Regional Rural Banks- Responsible Business Conduct)
(Link: Draft- Urban Coop Banks- Responsible Business Conduct)
(Link: Draft- Rural Coop Banks- Responsible Business Conduct)
Withdrawal of Rs 2000 Denomination Banknotes Status: The Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 denomination banknotes from circulation vide Press Release dated 19th May 2023. These notes can be exchanged/ deposited/ send through India Post from any post office in the country, to any of the 19 RBI Issue Offices for credit to their bank accounts in India. The ₹2000 banknotes continue to be legal tender. The total value of Rs 2000 banknotes in circulation, which amounted to Rs 3.56 lakh crore, has declined to Rs 5551 crore as at the close of business on 28th February 2026. Thus, 98.44% of the banknotes has since been returned.
(Link: RBI Press Release Dated 02/03/2026)
J. Miscellaneous
NCLAT, Penalty for Bid Rigging upheld as Cartelisation in Tender Established: Case of Klassy Enterprises vs Competition Commission of India, NCLAT Delhi Judgement Dated 7th January 2026. The appellate tribunal held that cartelisation and bid rigging/ collusive bidding in tender is clearly established in public welfare tender by common IP address and identical bidding. Accordingly, penalty for being engaged in bid rigging and cartelisation has been duly imposed.
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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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