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Circulars
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Applicability of CBIC Circular Nos. 265/11/2026-GST and 266/12/2026-GST regarding Clarifications on GST Classification of Certain Goods and Applicability of GST on Certain Services under the OGST Act, 2017
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GST classification and applicability clarifications for certain goods and services apply with necessary adaptations to the GST framework.
Clarifications issued by the Central Board of Indirect Taxes and Customs on goods classification and the applicability of GST to certain goods and services apply mutatis mutandis in implementing the Odisha Goods and Services Tax Act, 2017. Their application is intended to ensure uniformity. Circular No. 265/11/2026-GST concerns classification and GST applicability for supplies of certain goods, while Circular No. 266/12/2026-GST concerns GST applicability to certain services. Difficulties in implementing these clarifications may be brought to the attention of the Commissioner of State Tax, Odisha.
Constitution of Sub-Committee for Resilience & Logistics Intervention for Export Facilitation (RELIEF) under EXPORT PROMOTION MISSION
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RELIEF Sub-Committee will review implementation, fund utilisation and uptake, recommending measures for consideration by the steering committee.
RELIEF Sub-Committee is constituted under the Export Promotion Mission to improve fund utilisation and uptake of the Support for Indian Exporters, Resilience & Logistics Intervention for Export Facilitation. It must review implementation of RELIEF's three components, including claims processed and available balances, examine factors affecting uptake and utilisation of approved funds, and recommend improvement measures. Recommendations are placed before the EPM Steering Committee for decisions concerning review of RELIEF, while the EPM Section acts as the Sub-Committee's secretariat.
Clarifications regarding applicability of GST on certain services.
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GST treatment of grant-funded research, shipping imports, vehicle leasing and banking services follows specified exemption, valuation and taxability principles.
Under banks' fund transfer pricing mechanism, notional amounts or interest recorded against the activity of making a loan or advance fall within the definition of interest for the applicable GST exemption. Co-lending services provided by a non-banking financial company to a bank are taxable under GST. These services include customer sourcing, credit appraisal, servicing, collection and recovery, and their taxable value is the value specified in the agreement between the parties.
Clarification regarding classification and applicability of GST on the supply of certain goods based on the recommendations of the GST Council in its 57th meeting held on 8th October 2026, at New Delhi.
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GST classification and input tax credit guidance covers toys, bio-stimulants, sublimation paper and used vehicle supplies.
Sublimation paper falls under heading 4809 and attracts 18% GST. Registered seaweed-extract-based bio-stimulants fall under heading 3101, with past-period disputes recommended for regularisation on an "as is where is" basis. Toy entries cover all categories under heading 9503: non-electronic toys attract 5% GST and electronic toys attract 18%, including their parts and accessories. Under the used motor vehicle margin scheme, the input tax credit restriction applies only to tax paid on procured second-hand vehicles; credit on other inputs and input services remains subject to the applicable Act.
Clarification in respect of the omission of rule 96 (10) of the West Bengal Goods and Services Tax Rules, 2017.
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Export refund restrictions are treated as retrospectively omitted, with corresponding treatment for other omitted rules and pending proceedings.
The omission of rule 96(10) is clarified as effective retrospectively from 23 October 2017. Field formations are advised to deal with pending proceedings concerning the restriction in accordance with the Supreme Court's decision in Goodluck India, and corresponding treatment applies, with necessary modifications, to the omission of rules 89(4A) and 89(4B). Section 6 of the General Clauses Act, 1897, does not apply to the omission of a rule; pending proceedings can continue only where an express provision or another legal device in the statute or rules preserves them.
Clarification in respect of receipt of payment for export of goods or services
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Export payment compliance covers repatriable rupee receipts, permitted set-offs and reinsurance commission retention, with refund recovery for unrealised goods proceeds.
Receipt of export-of-service consideration in convertible foreign exchange or through repatriable rupee accounts, including Special Non-Resident Rupee (SNRR), INR Nostro and comparable accounts, satisfies the payment condition for export of services under section 2(6)(iv) of the Integrated Goods and Services Tax Act, 2017. Export receivables set off against import payables satisfy the same payment condition when the set-off complies with RBI directions. For exported goods, non-realisation of sale proceeds within the period prescribed under the Foreign Exchange Management Act, including extensions, requires deposit or recovery of the refund attributable to the unrealised amount, with applicable interest, within 30 days of expiry. Recovery under rule 96B of the West Bengal Goods and Services Tax Rules does not apply to the extent the realisation requirement is written off by the RBI or an authorised dealer bank.
Clarification on Input Tax Credit admissibility to authorised agents appointed by manufacturers for sale of motor vehicles, pursuant to the Trade Circular No. 24/2024 dated 04.10.2024
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Demo vehicle input tax credit is not blocked under motor vehicle restrictions for agents facilitating manufacturers' direct customer sales.
Input tax credit on demo vehicles purchased by authorised dealers operating under the dealer-agency model is not blocked under section 17(5)(a) of the West Bengal Goods and Services Tax Act, 2017. The earlier clarification denying credit because the dealer supplied marketing or facilitation services rather than vehicles on its own account has been withdrawn. In this model, the manufacturer sells new vehicles directly to customers, while the dealer purchases and maintains demo vehicles for demonstration and test drives. The expression "such motor vehicles" is interpreted to include vehicles used to further the supply of similar vehicles, rather than only the particular vehicle sold.
Clarification on issues related to provisions of section 17(4) of the West Bengal Goods and Services Tax Act, 2017
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Input tax credit apportionment for banking and financial institutions links registration eligibility, same-PAN supplies and reporting to the optional method.
Banking and financial institution registrations engaged in accepting deposits or extending loans or advances may opt for the 50% eligible input tax credit method under section 17(4); if one eligible registration opts, all registrations of the same entity engaged in those services must follow it. The exception for supplies from another registered person with the same PAN applies only where that supplier has also opted for section 17(4). Eligible credit is apportioned and reported in GSTR-3B, while credit that may become eligible later is temporarily reversed or, where IMS applies, its document is kept pending.
Implementing certain recommendations of the GST Council in its 57th meeting held on 08.10.26 at New Delhi, prior to the legislative amendments
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GST enforcement reforms suspend arrests, restrict transit interception, and bar low-value show-cause notices pending statutory amendments.
Pending statutory amendment, GST field formations must not make further arrests. Transit conveyances may be intercepted only on specific intelligence authorised in writing by an officer of at least Joint Commissioner rank. Inspection and detention generally depend on jurisdiction over the supplier or recipient; where neither falls within that jurisdiction, the conveyance must proceed and information be sent to the jurisdictional officer. Absence of both an e-way bill and origin or destination documentation permits inspection, detention or seizure irrespective of jurisdiction. Transit confiscation is prohibited, and show-cause notices cannot be issued below the aggregate threshold of Rs. 10,000.
Compliance with RERA for CDs having real estate projects and disclosure of CIRP at project and office sites of the CD
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Real estate insolvency requires regulatory compliance, collection of available project information and prominent disclosure at project sites and offices.
During the corporate insolvency resolution process (CIRP) of a corporate debtor with one or more real estate projects, the interim resolution professional (IRP) or resolution professional (RP) must ensure compliance with the applicable Real Estate (Regulation and Development) Act, 2016, and related rules and regulations. The RP may invite the concerned RERA to provide written views on the regulatory compliance, feasibility and implementation of resolution plans under consideration by the committee of creditors. Any views furnished must be placed before the committee and made available to prospective resolution applicants.
Introduction of revised Form CA for filing of claims by real estate allottees
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Real estate allottee claims require a dedicated section of the insolvency claim form, including non-binding preferences for resolution plans.
Revised Form CA applies to claims filed by financial creditors in a class under regulation 8A of the corporate insolvency resolution process regulations on or after 30 October 2026. Claims filed in the earlier form before that date need not be resubmitted. Part II requires allottee identification, project and unit details, purchase value, payments and amounts claimed, including principal and interest, possession status and supporting documents. Allottee preferences are informational only: they do not confer an entitlement, bind the successful resolution applicant or create an obligation to provide the preferred option.
Extension of timeline with respect to compliance of Digital Accessibility Circulars
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Digital accessibility compliance deadlines are extended for regulated entities to appoint IAAP auditors, audit platforms and remediate findings.
Digital accessibility compliance deadlines for SEBI-regulated entities are extended to 31 January 2027 for appointing an IAAP auditor, conducting accessibility audits of digital platforms and remediating audit findings. The earlier digital accessibility directions concern the Rights of Persons with Disabilities Act, 2016 and the rules made under it, and require mandatory compliance by all regulated entities. All other provisions of the earlier digital accessibility circulars remain unchanged and must be complied with by regulated entities.
Rationalisation of periodicity of KYC review for FPIs
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KYC review periodicity for foreign portfolio investors is extended while registration continuance no longer requires change declarations.
KYC review for FPIs follows a risk- and category-based schedule. Category I FPIs in non-high-risk jurisdictions, and high-risk Category I FPIs registered under Regulation 5(a)(i), are reviewed every eight years; other specified FPIs are reviewed every two years. Registration continuance requires fee payment to the DDP at least 15 days before expiry and no longer requires change intimation or a no-change declaration. GS-FPI and SWAGAT-FI KYC periodicity remains unchanged.
Clarification regarding classification and applicability of GST on the supply of certain goods based on the recommendations of the GST Council in its 57th meeting held on 8th October 2026, at New Delhi.
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GST classification and input tax credit rules clarify toy coverage and limit credit restrictions on second-hand vehicle suppliers.
Sublimation paper is classified under Customs Tariff heading 4809 and attracts 18% GST. Seaweed extract-based bio-stimulants registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985 are classified under heading 3101 rather than as plant-growth regulators under heading 3808; an explanation has been inserted in the relevant GST rate entry. Non-electronic toys, including their parts and accessories, attract 5% GST; electronic toys, including their parts and accessories, attract 18% GST. For old and used motor vehicles supplied under the margin scheme, the condition restricting input tax credit (ITC) for concessional GST and Compensation Cess rates applies only to tax paid on the procured second-hand vehicles. Subject to the Uttar Pradesh GST Act, 2017, suppliers may claim ITC on other inputs and input services used in the business, including spares, repair and maintenance, technology services, rent, marketing and advertising.
Clarifications regarding applicability of GST on certain services.
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GST on co-lending services applies to NBFC charges specified in agreements with banks for lending-related activities.
For an exemption claim, a certificate from the head of the concerned entity or institution stating that the activity is research and development rather than consultancy may be accepted. Imports of services without consideration by an Indian establishment of a foreign shipping company from a related person or its establishment outside India are exempt from 1 November 2026. GST payment for such imports from 1 July 2017 to 31 October 2026 is regularised on an as-is-where-is basis. Lending services supplied by an NBFC to a bank under a co-lending arrangement are taxable under GST. Their value is the amount specified in the contractual agreement between the NBFC and the bank.
Clarification on Issues pertaining to Input Service Distributor.
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Input service distributor allocation requires recipient eligibility compliance, timely distribution, and exclusion of transferred credit from the transferor's net ITC.
Credit becomes available for distribution when invoice details have been received in FORM GSTR-6A and the ISD ascertains that the credit is prima facie eligible for availment. The ISD must distribute it in the month of that ascertainment, separately identify eligible and ineligible credit, and include the details in FORM GSTR-6. Although the ISD makes this initial assessment, the recipients are responsible for satisfying the eligibility conditions under sections 16 and 17 and the applicable rules.
Guidelines for the handling applications for GST registration - reg.
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GST registration scrutiny requires accurate premises proof, appropriate Aadhaar verification and relevant queries without unnecessary documents or subjective objections.
Officers may seek relevant clarification or documents through FORM GST REG-03 within the applicable period, and applicants must respond in FORM GST REG-04 within seven working days. A decision follows within seven working days of the reply, with written reasons and FORM GST REG-05 for rejection where the reply is unsatisfactory. Registration is deemed approved if no action is taken within the prescribed period. Officers must avoid unnecessary documents and presumptive objections, including objections based solely on residential location or the use of residential premises; utility and property records are checked for name and address.
Clarification on issues related to demand, adjudication and appeal proceedings under the UPGST Act, 2017.
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GST demand and appeal proceedings require evidence-based notices, fair hearings, reasoned orders, and strict limits on rectification.
Fraud, wilful misstatement or suppression provisions require material evidence of conduct intended to evade tax; non-payment or a scrutiny discrepancy alone is insufficient. The notice must disclose the specific allegations, facts and evidence supporting their invocation. Adjudication orders should independently examine each material issue, the evidence, taxpayer submissions and relevant legal authorities, with reasons for accepting or rejecting them. The order must remain within the notice's grounds and proposed amounts; a new issue may be pursued through a separate notice. Rectification under section 161 is confined to errors apparent on the face of the record and cannot substitute for an appeal or reconsideration of disputed merits.
Clarification regarding deletion of Rule 96(10) of the Uttar Pradesh Goods and Services Tax Rules, 2017.
Show AI Summary
Export refund restrictions linked to input exemptions are retrospectively removed, with pending proceedings addressed under the applicable legal framework.
Deletion of Rule 96(10) of the Uttar Pradesh GST Rules is clarified to apply retrospectively from 23 October 2017, when the restriction took effect. Field formations are advised to deal with pending proceedings concerning Rule 96(10) in accordance with the Supreme Court decision in Goodluck India Ltd. A similar procedure applies, with necessary modifications, to the deletion of Rules 89(4A) and 89(4B). Pending proceedings can continue only where an express provision or other legal arrangement preserves them.
Clarification on Input Tax Credit admissibility to authorised agents appointed by manufacturers for sale of motor vehicles, pursuant to the circular No. GST/2024-25/92/State Tax Dated:27 September, 2024
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Demo vehicle input tax credit is not blocked for authorised dealers facilitating manufacturers' sales under the dealer-agency model.
Input tax credit on demo vehicles purchased by authorised dealers under the dealer-agency model is not blocked under section 17(5)(a) of the Uttar Pradesh Goods and Services Tax Act, 2017. The earlier clarification denying credit where dealers merely provided marketing or facilitation services and did not sell vehicles on their own account is withdrawn. The restriction applies to passenger motor vehicles with an approved seating capacity of not more than 13 persons, including the driver, subject to exceptions for taxable further supply, passenger transportation and driving training.

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Comprehensive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism

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Offer For Sale mechanism updated with revised order types, upfront margin, real time margin handling and next day settlement.
OFS rules amended to require promoter eligibility for top market cap companies, define Indicative Price as the volume weighted average of valid bids, ... Summary

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Acts Income Tax