ESG investing rules: Mutual funds must adopt defined strategies and enhanced disclosures to curb greenwashing and improve transparency.
Introduction of a separate regulatory sub-category for ESG schemes requires Mutual Funds to offer multiple equity thematic schemes distinguished by defined ESG strategies, with a minimum 80% AUM allocation to equity instruments aligned to the chosen strategy; from October 1, 2024 at least 65% of AUM must be in companies reporting comprehensive BRSR with assurance on BRSR Core, subject to a transitional compliance window and prohibitions on fresh investments without assurance during that period.

Section 65 audit powers authorize designated state tax officers for specified financial years within assigned territorial jurisdictions.
The Commissioner of State Tax confers Section 65 audit powers on specified Assistant, Deputy and Joint Commissioners of State Tax under the Bihar Goods and Services Tax Act, 2017. The authority applies to audits concerning financial years 2017-18 and 2018-19, subject to the period assigned to each officer. Each officer's authority is limited to the respective divisional or zonal jurisdiction allocated to them.

Inter-office supply valuation: invoice value deemed open market value where recipient claims full input tax credit.
For common input services procured by a Head Office from a third party and attributable to the Head Office and one or more Branch Offices, the Head Office may either distribute ITC via the Input Service Distributor mechanism (subject to mandatory ISD registration) or issue tax invoices to Branch Offices so they may claim ITC; such distribution or invoicing is permitted only where the services are attributable to or actually provided to the receiving Branch Office. For internally generated services, when the recipient Branch Office is eligible for full ITC the invoice value is deemed the open market value irrespective of included cost components; if recipient is not eligible for full ITC, HO salary costs need not be mandatorily included in taxable value.

E-invoice obligation requires suppliers exceeding turnover threshold to issue e-invoices for supplies to government entities registered for TDS.
E-invoicing is required for supplies made to government departments, establishments, agencies, local authorities, and PSUs that are registered solely for deduction of tax at source, because such entities are treated as registered persons under the GST law; suppliers whose turnover exceeds the prescribed threshold must therefore issue e-invoices for supplies to these TDS-registered government entities.

Taxability of shareholding: holding shares in a subsidiary is not treated as a supply under GST and not taxable
Holding of shares in a subsidiary by a parent company is not, by itself, a supply under section 7 of the APGST Act and therefore not taxable under GST. Securities, including shares, are neither goods nor services; SAC classification alone does not establish a taxable service, and purchase or sale of shares is not inherently a supply of goods or services.

Trading window PAN freeze for designated persons extended to all listed companies in phased implementation to restrict trading.
SEBI extends a phased framework requiring freezing of PAN at the ISIN level to restrict trading by Designated Persons during trading window closures under Clause 4 of Schedule B read with Regulation 9 of the PIT Regulations. Listed companies must confirm DP details and closure dates via a Designated Depository portal at least two trading days before commencement; the DD shall relay information to stock exchanges and other depositories by T 1 day and update daily. Depositories will restrict off-market transactions and pledges, and stock exchanges will block on-market trading for the closure period, with additions, updates and exemptions processed within two trading days.

State coordination committee for GST authorities to coordinate data sharing, anti-evasion action and unified administrative responses.
Creation of a State Co-ordination Committee of State and Central GST authorities, co-chaired by Central and State Chief Commissioners with rotational convenership, constituted on a perpetual basis and meeting quarterly. Its mandate covers data and knowledge sharing on evasion and audit matters, preventing fake input tax credit, exchanging audit findings, maintaining field contact details, referring reforms to the GST Council Secretariat and policy wings, coordinating taxpayer facilitation and grievances, adopting a uniform litigation position, avoiding duplicate investigations, and conducting local coordinated verification drives.

Inter-office service taxation: clarifies ITC distribution, invoicing, and valuation rules for distinct persons under GST.
Where a Head Office procures common input services for itself and branch offices, it may either distribute input tax credit using the Input Service Distributor mechanism (with mandatory ISD registration if chosen) or issue tax invoices to branch offices so they can claim ITC; distribution or invoicing is permissible only if the services are attributable to or actually provided to the branch. For internally generated supplies, the invoice value is deemed open market value when the recipient is eligible for full ITC irrespective of included cost components, and salary costs need not be mandatorily included where full ITC is not available to the recipient.

E invoicing applicability: suppliers exceeding threshold must issue e invoices for supplies to government entities registered for tax deduction.
Government Departments, establishments, government agencies, local authorities and PSUs registered solely for tax deduction at source are to be treated as registered persons; therefore suppliers whose turnover exceeds the prescribed threshold for e invoicing are required to issue e invoices for supplies made to such government entities under the e invoicing rules.

Refund of accumulated input tax credit based on GSTR 2B governs refund admissibility and related portal filings.
Refund of accumulated input tax credit is restricted to ITC reflected in FORM GSTR 2B for the relevant or earlier tax period in which the credit is available, applicable prospectively from the statutory amendments. The undertaking in FORM RFD 01 and related annexures have been amended to remove references to the omitted Section 42 and deleted returns; applicants must undertake compliance only with clause (c) of sub section (2) of section 16. Exports value for "adjusted total turnover" is to be determined as per the newly inserted Explanation to sub rule (4) of Rule 89. Exporters who paid IGST under Rule 96A may claim refund of IGST and unutilized ITC upon actual export or realization, but interest paid under Rule 96A is not refundable.

Taxability of holding company shares: mere holding of subsidiary shares is not a taxable supply under GST.
Holding shares in a subsidiary by a parent company is not a supply under GST merely by virtue of a SAC entry; securities are neither goods nor services and purchase, sale or holding of shares does not constitute a taxable supply unless the statutory definition of supply is otherwise satisfied. The Board's clarification requires uniform application by field formations and directs publicity to trade and reporting of implementation difficulties.

GST on warranty replacement: no tax where replacements are free as included in original supply; extra charges taxable.
Replacement parts and repair services provided free during a warranty period are treated as included in the value of the original supply and are not subject to additional GST; additional consideration charged at replacement/repair is taxable. Manufacturers need not reverse ITC for warranty replacements provided free. Where distributors charge manufacturers for parts or repair services, those supplies are taxable and the manufacturer may claim ITC; if manufacturers supply parts to distributors free for warranty replacement, no GST or ITC reversal arises. Extended warranty is composite if sold with the original supply, otherwise it is a separate taxable contract.

TCS liability: the operator who releases payment to the supplier collects TCS unless the supplier is itself an operator, then the buyer side operator collects it.
Where multiple e commerce operators handle a single supply, collection and compliance under Section 52 of the CGST Act fall on the ECO that ultimately releases payment to the supplier when the supplier side ECO is not the supplier; if the supplier side ECO is itself the supplier, the buyer side ECO that collects payment must collect and remit TCS and perform other Section 52 compliances.

Input Tax Credit reconciliation clarified with capped excess credits allowed subject to supplier reporting, verification and certificates required.
Clarification directs that differences between ITC claimed in FORM GSTR-3B and ITC in FORM GSTR-2A for 01.04.2019-31.12.2021 be addressed by applying Circular No. 183/15/2022-GST for 01.04.2019-08.10.2019, and by allowing additional ITC under rule 36(4) for later subperiods only within prescribed capped excesses subject to verification that tax was paid by the supplier and production of required certificates; from 01.01.2022 ITC is admissible only as communicated in FORM GSTR-2B.

Total input tax credit consideration prevents interest unless combined ITC falls below wrongly availed IGST, triggering interest.
For interest on wrongly availed IGST credit, the relevant benchmark is the total input tax credit in the electronic credit ledger across IGST, CGST and SGST combined, not the IGST-head balance alone. No interest accrues if the combined ITC balance from availment until reversal never falls below the wrongly availed IGST amount; interest is triggered only to the extent the combined balance falls short. Compensation cess credit is excluded from this computation and cannot be used for CGST, SGST or IGST liabilities or reversals.

Suspension of Customs Broker licence: limited to appropriate cases requiring immediate action with recorded reasons.
Suspension of a customs broker licence is permitted only in appropriate cases requiring immediate action; the Commissioner may suspend when an enquiry is pending or contemplated, but must not apply suspension routinely or mechanically and should record reasons explaining why immediate suspension is necessary, taking into account potential disruption to smaller broker enterprises.

Fake GST registration and bogus ITC claims face tighter verification, scrutiny, and enforcement under strengthened tax officer controls.
Strengthened verification of GST registration applications requires proper officers to scrutinise documents, cross-check address proof, examine PAN and Aadhaar history, issue queries for deficiencies, and conduct mandatory pre-registration field verification within prescribed time limits. Applications involving out-of-state applicants, altered mobile numbers, or forged documents are to be closely scrutinised, with police reporting where fraud is detected. The circular also directs intensive ITC verification using analytical tools and enhanced enforcement for sin and other high-valued goods.

Mandatory additional qualifiers for customs declarations extended to allow resolution of implementation and testing issues.
Mandatory additional qualifiers for specified import and export declarations introduced by Circular No. 15/2023-Customs have had the compliance date extended to 01.10.2023 by Circular No. 18/2023 following trade representations, a departmental request and testing-related mismatches; stakeholders are directed to report implementation difficulties to the Additional Commissioner, Airport and ACC, Bengaluru Customs Zone.

Extension of audit period under section 65 granted due to GSTN system glitches, allowing additional time to complete the audit.
The Commissioner invoked the proviso to sub section (4) of section 65 of the WBGST Act, 2017 to extend the audit completion period for M/s G H Agencies Private Limited (GSTIN: 19AACCG3795M1ZY) for the period commencing on or after 1 April 2019 and ending on or before 31 March 2020. The audit began on 24 April 2023 and could not be completed within three months due to GSTN back office system glitches; an additional six month period from the original due date is granted and the order is effective immediately.

Document Reference Number verification is required for offline GST communications, enabling taxpayer validation and strengthening administrative transparency.
Offline GST communications issued by proper officers to taxpayers must carry an electronically generated Document Reference Number (RFN). Officers may generate and search RFNs through the GST portal's RFN service, and the generated RFN must be included in the communication. Taxpayers may verify the RFN on the GST common portal before or after login. The requirement applies to all communications not generated online by the system, and non-compliance is stated to be treated seriously.