Settlement currency flexibility: Indo Sri Lanka trade and current account transactions may be settled outside the ACU in permitted currencies.
Indo Sri Lanka current account and trade transactions may be settled outside the Asian Clearing Union (ACU) mechanism in any permitted currency until further notice. Category I Authorised Dealer banks must implement this change immediately, inform their constituents, and note that the circular operates under the Foreign Exchange Management Act while remaining subject to any other statutory permissions.

Re-credit of electronic credit ledger: process allows re-credit after deposit of erroneous refund via Form GST PMT-03A.
Re credit to the electronic credit ledger is permitted where a taxpayer deposits an erroneous refund with applicable interest and penalty via Form GST DRC-03; the jurisdictional proper officer shall, upon satisfaction of full payment and receipt of a written request, re credit an amount equivalent to the erroneous refund by order in Form GST PMT-03A, with priority processing recommended within thirty days. Eligible refund categories and required annexure particulars are specified.

Refund of accumulated ITC available where concessional notifications make output tax lower than input tax, subject to exclusions.
Refund of accumulated input tax credit on account of an inverted duty structure is admissible where the rate of tax on outward supplies is lower than on inputs at the same point in time due to supply under a concessional notification, subject to other statutory conditions; refunds remain unavailable where output is nil rated or fully exempt or where the Government has notified exclusions.

Input Tax Credit for deemed exports is procedural only; electronic credit ledger limited to output tax payments.
Tax paid on supplies treated as deemed exports is refundable; the temporary availability of that amount as Input Tax Credit was solely to enable portal refund claims and is not ITC under Chapter V, therefore not subject to section 17 restrictions. The proviso to clause (b) of subsection (5) of section 17 applies to the whole clause, and "leasing" in the exclusion refers only to motor vehicles, vessels and aircraft. Employer perquisites under employment contracts are not subject to GST. Electronic credit ledger may be used only for output tax and not for reverse charge, interest, penalties or other liabilities; electronic cash ledger may be used for all GST liabilities.

Fraudulent input tax credit: recipients liable for recovery and penal action; issuers liable under invoice-issuance penalties.
Issuing a tax invoice without underlying supply does not amount to supply under section 7 and therefore attracts no tax demand under sections 73 or 74 against the issuer, but the issuer is liable to penal action under section 122(1)(ii). A recipient who fraudulently avails and utilizes ITC without receipt of goods or services is liable for demand and recovery of the ITC and penal action under section 74 with interest under section 50; subsequent passing-on of ITC without supply attracts penal consequences for the passer-on under section 122 provisions.

Input Tax Credit reporting: reversals and ineligible credit must be declared under specific GSTR 3B tables to ensure correct ECL credit.
Registered persons must report place of supply wise inter State supplies to unregistered persons, composition taxpayers and UIN holders in table 3.2 of Form GSTR 3B and corresponding Form GSTR 1 tables; portal auto population does not replace the obligation to ensure correct PoS. Total ITC is auto populated into table 4(A) from Form GSTR 2B; absolute reversals and ineligible credits (rules 38, 42, 43 and section 17(5)) go in 4(B)(1), temporary reversals in 4(B)(2), time barred or recipient mismatch items in 4(D)(2), and net ITC in 4(C) = 4(A) - [4(B)(1)+4(B)(2)].

Faceless assessment: Trade must upload mandatory documents and provide comprehensive responses to expedite customs clearance.
The notice mandates steps to expedite faceless assessment: observe the CBIC assessment window, minimize repeated queries by consolidating issues, monitor transfers between FAG and PAG, and require importers/brokers to pre file Bills of Entry with all mandatory documents, adequate licence balances, and complete product and origin declarations on e Sanchit to prevent returns and assessment delays; grievance escalation is available via Turant Suvidha Kendra and Additional/Joint Commissioner (EDI).

Fully Accessible Route expanded to include additional specified government securities, enabling broader non resident investment eligibility immediately.
Two identified government securities and all new issuances of seven year and fourteen year tenors are designated as specified securities under the Fully Accessible Route, thereby making them eligible for non-resident investment on the same terms as domestic investors; the Directions are issued under the Reserve Bank's statutory authority and are effective immediately without prejudice to other legal permissions.

Prohibition on importing mobile phones with fake or duplicate IMEI requires an ICDR-issued IMEI certificate before customs clearance.
Import of mobile handsets with all-zero, null, duplicate, fake or invalid IMEI/ESN/MEID is prohibited; importers must obtain an IMEI certificate via the ICDR portal, where automated validation against GSMA TAC data and internal checks issue a certificate with control numbers and QR code for genuine consignments, and customs must validate certificates electronically prior to selective physical examination, while DoT supervises system operation, maintenance and audits.

Excisability of waste and by products confirmed non excisable; circular withdrawn and CENVAT reversal held inapplicable for factory clearances.
The Board rescinds Circular No. 1027/15/2016 CX (25.04.2016) that required reversal of input and input service credit for factory cleared residues, noting the Apex Court's view that bagasse and similar residues are non-excisable and hence the CENVAT Credit Rules do not apply; pending cases should be adjudicated in light of that law and implementation difficulties may be reported to the Board.

Overseas foreign currency borrowings can be used by AD Cat I banks for foreign currency lending, subject to ECB end use rules.
Authorised Dealer Category I banks may utilise funds raised from overseas foreign currency borrowings during the specified window for foreign currency lending to constituents in India, subject to the end use prescriptions applicable to External Commercial Borrowings and compliance with the Master Directions; the on lending permission subsists until maturity or repayment of the underlying borrowings.

FPI short-term investment relaxations permit temporary exemptions for certain debt securities, easing maturity and cap constraints.
The RBI exempted FPI investments in government securities and corporate bonds made between July 08, 2022 and October 31, 2022 from the 30% short-term investment limit until maturity or sale, and temporarily allowed FPIs to invest in commercial papers and non-convertible debentures with original maturity up to one year, thereby relaxing the one-year residual maturity requirement for corporate debt; these Directions take immediate effect.

Short-Term Line of Credit enables government-supported procurement finance for urea, with export declaration and utilization rules.
Exim Bank has extended a Government supported Short Term Line of Credit (STLoC) to Sri Lanka for procurement of urea fertilizer from India; exports must be eligible under the Foreign Trade Policy and shipments declared in the Export Declaration Form/Shipping Bill per Reserve Bank instructions. The STLoC's terminal utilization period is six months from signing, extendable by Exim Bank but not beyond twelve months. No agency commission is payable under the STLoC; exporters may pay commission from their own resources or EEFC balances after realization, subject to AD Category I bank compliance. Directions are issued under FEMA without prejudice to other statutory permissions.

Cybersecurity reporting for QRTAs now requires six-hour incident notifications and quarterly reports to SEBI via the dedicated email.
SEBI requires QRTAs to report all cyber-attacks, threats, incidents and breaches to SEBI within six hours of detection and to the national computer emergency response authority; systems designated as protected must also notify the critical infrastructure protection centre. Quarterly reports detailing incidents and mitigation measures must be submitted within 15 days after each quarter via the dedicated e-mail, using the existing reporting format, and QRTAs must implement systems to ensure immediate compliance.

Faceless assessment streamlining requires complete e-Sanchit documentation, limited queries, and grievance escalation to expedite customs clearance.
Faceless assessment of Bills of Entry is streamlined by limiting multiple queries, monitoring first-check and Port Assessment Group referrals, and requiring complete e-Sanchit documentation before filing. Importers and Customs Brokers should file Bills of Entry in advance, upload applicable regulatory, export, licence, technical, origin, quantity and other assessment documents, and provide specific query responses. Clearance grievances, including delays, unwarranted queries and first-check orders, may be escalated through the Turant Suvidha Kendra or the concerned Additional Commissioner or Joint Commissioner.

GST Appellate Tribunal reforms to align tribunal provisions with judicial principles while preserving federal balance and tax uniformity.
A Group of Ministers has been constituted to recommend amendments to GST law governing the GST Appellate Tribunal so as to preserve the federal balance, ensure uniform taxation, and align tribunal provisions with judicial principles; the GoM may consult legal experts, will be assisted by the Joint Secretary (Revenue), and must submit a report to the GST Council by the prescribed deadline.

Retrospective removal of refund provision: circular withdrawn ab initio under statutory withdrawal power, affecting airport retail supplies to departing tourists
The refund provision for inward supplies by airport retail outlets to departing tourists has been omitted retrospectively, and the government withdraws the earlier circular ab initio that had clarified that refund mechanism, nullifying the administrative guidance and removing its application from the retrospective effective date.

Withdrawal of administrative circular after retrospective omission of refund rule; prior guidance declared withdrawn ab initio and publicized.
Rule 95A providing refunds for taxes on indigenous goods supplied by airport retail outlets to outgoing international tourists against foreign exchange has been omitted retrospectively, and the Board has withdrawn Circular No. 106/25/2019-GST ab initio. The Board requests issuance of trade notices to publicize the withdrawal and inform stakeholders.

Refund of unutilised ITC for export of electricity: claim process and Rule 89 calculation clarified using monthly REA.
Procedure for refund of unutilised Input Tax Credit on export of electricity: file FORM GST RFD-01 under "Any Other" with remark "Export of electricity- without payment of tax (accumulated ITC)", upload Statement 3B, the monthly Regional Energy Account issued by RPC Secretariat, export invoices, tariff agreements, and Statement-3A calculation. Relevant date is the last date of the month as per the monthly REA. Refund calculation follows Rule 89(4): exported turnover = scheduled energy (REA) x tariff per unit, using the lower of REA and invoice quantities; Adjusted Total Turnover excludes domestic electricity turnover.

Refund of unutilised ITC for export of electricity: filing, documentation and calculation rules under GST procedures.
Refund claims of unutilised Input Tax Credit for export of electricity must be filed in FORM GST RFD-01 under "Any Other" with the remark "Export of electricity- without payment of tax (accumulated ITC)"; applicants must upload Statement 3B with export invoice details, monthly Regional Energy Account (REA) statement of scheduled energy from the RPC Secretariat and tariff agreements, and provide a refund calculation in Statement 3A. The refund is calculated using the rule 89(4) formula, with turnover of exports determined by scheduled energy in the REA multiplied by the agreed tariff per unit; where quantities differ between invoice and REA, the lower is used.