Fraud Risk Management in banks: mandatory EWS, red flagging, natural justice procedures, and RBI/CFR reporting timelines.
These Directions require banks to adopt a Board approved Fraud Risk Management Policy, establish EWS and Red Flagging frameworks integrated with core systems and analytics, investigate red flagged accounts via internal or external audit, adhere to principles of natural justice (SCN, 21 days, reasoned order), report red flagged accounts meeting CRILC threshold to RBI within seven days and all frauds to RBI via FMRs within 14 days, use the Central Fraud Registry for risk management, complete classification within 180 days, and ensure staff accountability and prescribed reporting to LEAs and other authorities.

GST classification clarifications confirm applicable rates on specified goods and regularise past-period issues subject to conditions.
Clarification under section 168(1) classifies dual-energy solar cookers under heading 8516 and confirms the applicable rate; treats all sprinklers, including fire water sprinklers, as falling within the sprinkler entry and applicable rate with past-period regularisation; amends the tariff entry to explicitly include parts of poultry-keeping machinery with the applicable rate and past-period regularisation; narrows the scope of "pre-packaged and labelled" to exclude agricultural farm produce in packages over twenty-five kilogram or litre so such supply will not attract the specified levy, with past-period regularisation; and regularises past supplies of pulses and cereals made to or by government-engaged agencies under approved programmes subject to a Deputy Secretary certificate and reversal or disallowance of input tax credit.

GST exemption scope clarified for railways, SPVs, RERA, digital payment incentives, reinsurance and certain accommodation services.
GST applicability clarified across several service categories: Ministry of Railways supplies to the public and inter division supplies are exempted with past liabilities regularised; SPV supplies permitting use of SPV infrastructure and reciprocal maintenance services are exempted with past period regularisation; statutory collections by RERA are covered by the governmental authority exemption; incentive shares under the RuPay/UPI scheme distributed as decided by NPCI are treated as subsidy and not taxable; reinsurance (including retrocession) of specified exempt and government funded schemes is regularised for past periods; specified accommodation services meeting value and duration criteria are exempted with retrospective regularisation.

Recognition of RAASB and IAASB enables BSE to administer RA/IA registration and impose administrative fees while ensuring fee neutrality.
BSE Limited is recognised as RAASB and IAASB for five years from July 25, 2024, and must adopt bye-laws, SOPs and guidance to supervise Research Analysts and Investment Advisers. Applicants for registration or renewal will pay administrative fees specified by RAASB/IAASB; SEBI's amended RA fee schedule takes effect from July 25, 2024, and total fees payable to SEBI and RAASB/IAASB will remain fee-neutral. Applications filed before July 25, 2024 will follow the previous SEBI fee structure, and other terms of SEBI's May 2, 2024 circular continue to apply.

GST classification clarification: specified goods' applicable rates confirmed and past-period doubts regularized on an as-is-where-is basis.
Clarifications address classification and GST rates for specified goods and regularisation of past-period doubts. Solar cookers using solar and grid power are classified under the relevant machinery heading and attract the prescribed rate. All sprinklers, including fire water sprinklers, attract the prescribed rate and past-period issues are regularized on an as-is-where-is basis. Parts of poultry keeping machinery are explicitly included in the rate schedule and regularized retrospectively. The definition of pre-packaged and labelled excludes agricultural produce in packages over twenty-five kilogram or litre, altering levy applicability, with past-period regularisation. Supplies to or by government agencies for approved subsidy programmes are regularized subject to certification and Input Tax Credit reversal conditions.

Refund entitlement for CSD on inward supplies allowed via new electronic procedure with eligibility and validation requirements specified.
CSDs may file refund claims electronically in FORM GST RFD-10A for fifty per cent of tax paid on inward supplies received for subsequent supply to Unit Run Canteens or authorized customers; claims must be filed quarterly (or clubbed), supported by supplier- and CSD-GSTIN-bearing invoices, an undertaking and declaration, and are permissible only where suppliers have reported the invoices in GSTR-1 and filed GSTR-3B. Proper officers will validate GSTINs and returns, match invoices with portal records (including GSTR-2B), restrict sanctioned refunds to 50% of applicable taxes with portal auto-population (editable downward only), verify ITC reversal where applicable, and issue orders in FORM GST RFD-06.

Refund of additional IGST for post-export price revisions allowed via FORM GST RFD-01, processed by the jurisdictional GST officer.
Procedure for refund of additional IGST paid on account of upward revision in export prices: exporters may file FORM GST RFD-01 electronically for refund processed by the jurisdictional GST officer under rule 89, uploading Statements 9A and 9B and documentary evidence including shipping bills, invoices and proof of payment and foreign exchange remittance; GSTN will provide validated shipping bill and customs refund data to assist verification and the proper officer will scrutinize reporting in outward supplies and GSTR-3B before issuing refund sanction and payment orders.

Valuation of corporate guarantee: annual deemed value or actual consideration governs GST liability on issuance and renewals.
For guarantees issued or renewed on or after the amendment, valuation of the service of providing a corporate guarantee to a banking company or financial institution for a related recipient is the higher of actual consideration and a deemed annual benchmark based on the amount guaranteed multiplied by the number of years the guarantee covers; proportionate valuation applies for periods shorter than a year, and tax is payable on issuance and on each renewal. The value is determined by the amount guaranteed irrespective of actual loan disbursal, and where full input tax credit is available the invoice value is deemed the value of supply.

Pre-deposit stay on recovery: payment via electronic liability ledger or DRC 03A with undertaking suspends recovery until tribunal operates.
Where the first appellate authority has confirmed a demand but the Appellate Tribunal is not yet constituted, taxpayers who intend to appeal may secure a stay on recovery of the remaining confirmed demand by paying an amount equal to the required pre-deposit via the Electronic Liability Ledger (Services Ledgers Payment towards demand) and by submitting an undertaking to the proper officer to file the appeal before the Tribunal when it becomes operative. Payments inadvertently made through FORM GST DRC 03 can be regularised by filing FORM GST DRC 03A on the portal, allowing such payments to be adjusted as pre-deposit; until FORM GST DRC 03A is available, taxpayers may notify proper officers to defer recovery.

CSD refund entitlement: electronic filing with FORM RFD-10A, invoice validation and partial tax refund cap enforced.
CSDs must file refund claims electronically in FORM GST RFD-10A on the common portal, applying quarterly (with an option to club quarters/FYs). Refunds are admissible only for inward supplies received from registered suppliers who have furnished GSTR-1 and filed GSTR-3B; invoices must show supplier GSTIN and CSD GSTIN and be accompanied by an undertaking and declaration. The proper officer will validate invoices against GSTR-2B/GSTR-1/GSTR-3B, exclude already-refunded invoices, ensure a partial tax refund cap, verify ITC reversals, and issue orders in FORM GST RFD-06 with a speaking order.

IGST refund mechanism for post-export price increases: exporters file FORM GST RFD-01; jurisdictional GST officers process claims.
Refunds of additional IGST paid due to upward post-export price revisions are claimable by exporters via FORM GST RFD-01 filed electronically; jurisdictional GST officers will process such claims under rule 89 using GSTN-provided shipping bill and IGST data. Claims require specified documentary proof-shipping bills, original and revised invoices or debit notes, contract evidence, proof of additional IGST and interest payment, foreign exchange remittance (FIRC) and a practising accountant's certificate-and the officer must verify reporting in FORM GSTR-1 and FORM GSTR-3B before issuing a speaking sanction and payment order.

Valuation of corporate guarantee services: GST based on higher of actual consideration or annual percentage of amount guaranteed, with charge mechanics clarified.
The provision of corporate guarantees between related persons to banks or financial institutions is taxable and, for guarantees issued or renewed on or after 26 October 2023, valuation is governed by Rule 28(2). The value equals the higher of actual consideration and one per cent per annum of the amount guaranteed (pro rata for periods under a year and multiplied by years for multi year guarantees). Tax is payable on issuance and on each renewal; domestic intra group guarantees are forward charged with invoicing, foreign issued guarantees to Indian recipients attract reverse charge, and recipients may claim input tax credit subject to conditions.

Pre-deposit payment stay on recovery: electronic ledger payment and undertaking pause recovery until tribunal is operational.
If the Appellate Tribunal is not operational, taxpayers can secure a stay of recovery by paying an amount equal to the pre-deposit via Services Ledgers Payment towards demand, which maps the payment in Electronic Liability Register Part II against the selected order, and by filing an undertaking to appeal before the Tribunal when it is constituted. Payments inadvertently made through FORM GST DRC-03 can be adjusted towards the pre-deposit upon filing FORM GST DRC-03A (subject to exclusions where FORM GST DRC-05 has been issued); absence of payment, undertaking, or timely DRC-03A filing permits recovery under the CGST Act.

Interest Equalisation Scheme extension clarified: cap per IEC specified, applies only to MSME manufacturer exporters, no new UIN.
Clarification to the extended Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit caps the benefit at Rs. 1.66 crore per IEC for 1 July 2024 to 31 August 2024, restricts applicability to MSME Manufacturer Exporters eligible for the 3% IES benefit (excluding MSME merchant exporters eligible for 2%), and confirms no revised UIN is required where a FY 2024-2025 UIN already exists.

Waiver of late fees for bills of entry due to licence non transmission at Chennai ports between 26 Jun-6 Jul.
Late fees are waived for bills of entry filed against 55 EPCG and DEEC (Advance Authorisation) licences that were not transmitted from DGFT to ICEGATE/ICES, causing filing difficulties from 26 June 2024 to 6 July 2024; the transmission issue was rectified on 07 July 2024. The waiver applies to bills of entry for vessels with entry inwards at Chennai Seaport, Kattupalli Port and Ennore Port for the stated period, the Public Notice is treated as a Standing Order, and remaining difficulties should be reported to the Assistant Commissioner of Customs (Appraising Main), Chennai-II (Import).

Exchange rate error caused excess export incentives; stakeholders must reverse amounts with interest and provide proof to customs.
An incorrect USD rate was fed into ICES on 07-09-2023, causing 464 shipping bills across INTUT1 and INTUT6 to receive excess Drawback, RoDTEP and RoSCTL. Stakeholders must reverse the excess amounts with interest and submit proof and detailed calculation worksheets to the Drawback & IGST Refund Section; non-compliance will invite fines and penalties under the Customs Act 1962. Detailed lists of affected shipping bills are enclosed and a contact is provided for difficulties.

SCOMET applicability clarified: spherical aluminium powder and reactive aluminium powders require SCOMET licensing, with lab or inspection verification allowed.
DGFT clarifies that spherical or spheroidal aluminium powder under categories 3A301.c and 6A008.c is subject to SCOMET, with government or NABL accredited laboratory reports acceptable for shape and size determination. Aluminium powder that is reactive in nature under 6A008.h is subject to SCOMET regardless of size or shape; powders made under vacuum or using noble gases may be considered reactive. Customs may verify by factory inspection or accept exporter documentary proof to its satisfaction.

Proper officer designation shifted to Superintendent of Central Tax, reallocating registration and composition levy functions and requiring trade notices.
Functions relating to registration and composition levy under specified provisions of the CGST Act and associated CGST Rules are reassigned to the Superintendent of Central Tax, replacing prior assignment to Assistant or Deputy Commissioners/Directors; recipients must issue trade notices and report implementation difficulties to the Board.

Liberalised Remittance Scheme expanded: resident individuals may use IFSC foreign currency accounts for broader financial and cross-border transactions.
Remittances under the Liberalised Remittance Scheme to IFSCs are expanded: resident individuals may open Foreign Currency Accounts in IFSCs to avail financial services or products within IFSCs and to conduct all permissible current and capital account transactions in other foreign jurisdictions through such FCAs; Authorised Persons must inform customers and the Master Direction on LRS will be updated, subject to other legal permissions.

Surveillance of securities market: exchanges and depositories implement PAN-based freezes and automated disclosures to curb insider trading.
Master Circular consolidates SEBI surveillance directives requiring initial listing trades in a Trade for Trade segment, mandating intermediaries to implement internal conduct controls against circulation of unauthenticated market news, standardising PIT disclosure formats and reporting of Code of Conduct violations, and implementing system-driven disclosures and automated dissemination. It establishes a portal-based framework where Designated Depositories auto-populate DP PAN/demat details, listed companies confirm trading-window dates at least T-2 days, and depositories/exchanges freeze PAN at ISIN level to restrict on- and off-market transactions during trading-window closures with time-bound procedures for additions and exemptions.